Bankruptcy is a final financial solution for many people who become unable to meet their obligations. It means that the money they earn is no longer sufficient to make regular payment to creditors and sustain them as well. This kind of scenario is not unusual for many people hence the increased number of bankruptcy filings of the last few years. The housing market crash has only contributed to the problem and resulted in a flood of foreclosed upon properties going on sale. The decision to go down this path is never easy and should be duly considered given the consequences.

 

One of the first consequences is the stigma. Legal matters like bankruptcy are never a secret and many people are surprised by how quickly their friends, family and business partners get to know about it. It is embarrassing and many people often feel like failures when they do so. When it comes to their professional lives, it can be cause for an employer to feel suspect about his employee’s ability to manage the financial affairs of the firm. The effect is most pronounced if the person works in the financial sector or department of the business. When it comes to new job opportunities, many prospective employers seek out credit reports and will easily find out about it. Needless to say a bankruptcy filing will work against your chances of being hired. 

 

Another consequence is the loss of property. In many cases, filing for bankruptcy may not necessarily mean salvaging your property. It may mean provide a temporary stay to creditors preventing them from seizing your property but the ultimate judgment may force you to dispose of your assets to compensate them. Other effects include further financial loss in having to pay court and lawyers fees. Perhaps the most far reaching will be the inability to access credit facilities for at least ten years afterwards. Before making this decision, be sure to consult a tampa bankruptcy lawyer to discuss your options and if necessary get the filing done correctly.