Costs
While it may sound counterintuitive, bankruptcy is expensive, costing anywhere between $1,500 and $4,000 on average. Therefore, not everyone who needs to file will be able to, making alternative measures necessary. Thankfully, some firms offer low-cost or free legal assistance to those who qualify.
Credit History
A negative of filing bankruptcy is that it may end up on your credit report, which will potentially affect your credit score. Unfortunately, the negative impact of a bankruptcy can last up to ten years.
Future Purchases
If the bankruptcy ends up affecting your credit score, it can lead to more significant challenges when attempting to make future larger purchases. For example, you may not be able to secure a loan for a car purchase without having a co-signer.
Sometimes, you have no choice but to file bankruptcy. However, before you do file, consider the items above and consult with a local bankruptcy attorney.