Bankruptcy is a big decision to make as it can save you from financial ruin. If you’re thinking about filing for bankruptcy due to your medical debt , you should take a deeper look and review the pros and cons of filing bankruptcy.
The first thing to realize is that filing bankruptcy for medical reasons is just like filing for any other reason, its exactly the same process and will affect your credit in exactly the same way. How will your credit be affected? Well, a bankruptcy can affect your credit score for up to 10 years, but on the positive side, from the day you file bankruptcy you can begin rebuilding your credit and with your financial problems behind you you actually may end up in a better position in the long run or at least in a pretty good position in a fairly short time.
In addition to affecting your credit score, a bankruptcy can also affect your ability to get a loan and a mortgage. However, now there are programs for people who have had a bankruptcy to help them get loans for homes but you may still end up paying a higher interest rate because lenders may see you as more of a risk.
One of the biggest benefits to filing bankruptcy is you get a fresh start and with the required financial and credit counseling, hopefully you’ll be better prepared to handle your debt this time around. You also come away with a peace of mind, knowing that you will no longer be harassed by collection agencies and creditors as the cloud of debt had been lifted from your life.