We all know that the economy is rough these days. Hopefully you have taken proper precautions to ensure that you are fairing well financially. If not, and you find yourself struggling royally to make ends meet, you might consider filing for bankruptcy. This however can have big effects on your family. It is important to first understand when it is proper to file for bankruptcy. You don’t want to rush into this process because of the consequences that will follow you for many many years. If you are finding you are having problems paying your debts, you are threatened with garnishment, you are threatened with foreclosure or you are threatened with repossession then filing for bankruptcy might be the best option for you. Consider asking the bankruptcy attorneys at Kirkpatrick & Associates for help. They are well versed on the bankruptcy process and can help you and your family get a fresh start. Since they specialize in bankruptcy you can know your money is being well spent with their expertise and knowledge of the process. It is important to realize and understand that bankruptcy can have effects on your family. Like most of our choices, the outcomes normally don’t just effect us in some way, but also those around us. First, if you have filed a Chapter 7 bankruptcy then your family might lose some of its possessions if there is outstanding debt. This could include a home or a car which would severely have an impact on an individual’s family. Second, your credit is shot when you file for bankruptcy and it can be a very long and hard process to get your credit score back up.
This can be difficult for families because banks will be less likely to give them a loan because of their history. An individual can slowly rebuild their credit through smaller purchases such as groceries or gas. Third, you may have to relocate your family. This can happen if you lose your home through a Chapter 7 or if you are simply looking ahead and find a more reasonable area for cost of living to help keep your expenses lower so that you can pay off your debts. Moving can be extremely difficult for children. I experience moving during high school because my dad accepted a new job offer and let me tell you it wasn’t easy. Also if your children know you are moving because you can’t afford where you are living there might be some embarrassment when they have to tell their friends. Fourth, filing for bankruptcy has an emotional impact on the individuals involved and by extension a family. Often emotions are running high and tension is in the air. Children have great intuition and will know when something is wrong. Try to be as open and honest with them as possible and encourage open communication. Bankruptcy is a difficult process that some people might find themselves going through at some point in their life. Try to do as much as possible to eliminate as much strain on your family as possible.