Bankruptcy is definitely a highly advertised solution to financial problems, but it is far from the only one. Also, there are many negative long-term effects of filing bankruptcy that other financial solutions will keep you away from. Here are a few of the reasons that you may want to consider an alternative solution:
It completely destroys your long term credit score:
Filing bankruptcy can create problems with your long-term credit score for at least a few years. It will be very difficult for you to get a loan for any large asset, much less to start a business. If there is any other solution available, then you may want to consider it. These problems can be completely avoided with an alternative solution.
Bankruptcy does not automatically protect your assets:
Many people think that simply filing bankruptcy means that your creditors have no access or claim to your assets. What these people do not know is that bankruptcy can actually weaken your position to protect your assets, because you put the question of their ownership strictly in the hands of the court.
It is a very expensive process (sometimes more expensive than other solutions):
Many people also do not know that bankruptcy is an expensive process that will drain your resources, or what is left of them, in terms of money and in terms of time. After all of that, you still may not be able to protect the very assets that you were looking to hold on to.
Bankruptcy kills the relationships
When you file bankruptcy, you are basically saying that you want the law to stand between your assets and the people who allowed you to purchase those assets. Outside of the legal ramifications of this decision, there is another emotional toll that this takes on relationships. This can get especially complicated if you borrowed money from family or friends in order to start a business.
You actually give up control when you declare bankruptcy. You put your entire well-being in the hands of the court. If you do not have the ability to advocate for yourself, then you will be at the mercy of your creditor’s counsel. Whoever has the best presentation wins in bankruptcy court, and the best presentation costs money.
With all of the things that can go wrong during a bankruptcy proceeding, it is better to consider less expensive financial alternatives with the best financial attorney that you can find. Attorney Jed Shaw is a licensed bankruptcy attorney, and this is exactly why he wants to get you to consider financial alternatives. Give Attorney Shaw a call at 713-750-9038 in order to discuss all of your financial options with a true financial and legal professional who will have your best interests at heart.