What are the consequences of filing for bankruptcy?

Filing for bankruptcy can be a difficult decision to make, but for some individuals it may be the only viable option for dealing with overwhelming debt. In Pennsylvania, there are both short-term and long-term consequences to filing for bankruptcy. In the short-term, filing for bankruptcy can adversely affect your credit score. Generally, you can expect your credit score to drop significantly, making it difficult to get financing or loans in the future. Additionally, you may face difficulty when trying to rent or purchase a home or vehicle. In the long-term, you may have difficulty obtaining credit on favorable terms for up to 10 years. With the stigma associated with bankruptcy, it can be difficult for some employers to consider you for certain positions. Additionally, depending on the type of bankruptcy you file, you may be required to give up certain assets such as property, vehicles, and other possessions. Finally, filing for bankruptcy can be a long and costly process. You will have to pay filing fees and may be required to pay attorney fees. You may also be required to enroll in a credit counseling or financial management courses. When considering filing for bankruptcy you should weigh the potential short- and long-term consequences. It is important to understand that filing for bankruptcy can have serious consequences, but it may be the only avenue available for dealing with unmanageable debt.

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What are the consequences of filing for bankruptcy?

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