For Kansas consumers, bankruptcy is a viable option for settling debts. However, the consumer should discuss the full impact of this decision with an attorney. While they could emerge debt free, there are several disadvantages to filing. An attorney in Topeka, KS presents the pros and cons of this decision to these consumers.
How Will Bankruptcy Affect the Consumer’s Credit?
The bankruptcy case remains on the consumer’s credit reports for up to ten years. While all debts that were settled are removed, the bankruptcy itself will remain. The consumer could face difficulties in the future when applying for credit. This listing could give the impression to creditors that they cannot manage their accounts and may be a risky choice.
When Can They Open New Lines of Credit?
The consumer cannot open new lines of credit until the bankruptcy case concludes. For chapter 13, this could prevent new accounts for up to five years. The consumer could also face difficulties when they choose to open these accounts as they may receive higher than average interest rates based on the credit score achieved after the case concluded.
What Happens If They Cannot Make a Payment?
Consumers are instructed by the bankruptcy judge about the repercussions of late payment. While delinquencies are frowned upon, some judges could make exceptions under certain circumstances. The consumer should also contact the court and make arrangements at any time they could be late. Late payments could lead to a discharge of the entire case. This will make the consumer liable for all debts involved in the claim.
If the Case is Discharged What Happens to Discharged Debts?
If the case is discharged by the court, the judge sends notifications to all creditors. Any debts that were discharged through the claim are restored. This makes the consumer responsible for paying these debts.
Kansas consumers could become debt free through bankruptcy. These opportunities help the consumer settle their debts more amicably. However, while they are helpful, they aren’t without their disadvantages. Consumers who choose these opportunities should assess these cons before starting a claim. Consumers who need an attorney in Topeka, KS should contact Joe Wittman today.