5 Reasons for not Filing Bankruptcy - Part 11. Your Overall Debt is Not That LargeIf you haven’t already read our Top Reasons to File bankruptcy, take a minute to review that list. The number one reason not to file bankruptcy is the opposite of the number one reason to file bankruptcy. Ultimately, bankruptcy is a financial decision and the decision should be based on how much qualified debt you have and how long it will take to pay back that debt. If your qualified debt is relatively low, filing bankruptcy may not be right for you. 2. Your Credit WILL be AffectedFiling bankruptcy will result in negative information on a credit report. It is important to recognize that a bankruptcy may legally stay on a credit report for 10 years. However, the negative effect on your credit for filing bankruptcy varies widely. Many clients already have poor credit because they have been late on outstanding debt. If that is the case, you ability to obtain credit may increase by filing bankruptcy. Ultimately a creditor may find you more appealing after a discharge of your debt because you have a greater ability to repay. 3. Bankruptcy Is Not FreeIn 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Under these new laws, Bankruptcy has become much more complex and requires more work then ever before. As a result, attorney’s fees for basic Chapter 7 and Chapter 13 cases have increased dramatically. Our fees start at $1,145 depending on your circumstances. Despite the costs, the new laws have made it even more important to hire a licensed attorney who understands the long-term effects of your filing. Hiring the wrong person can literally costs thousands of dollars and years of unnecessary problems.
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