Q.Why should bankruptcy be viewed as a last resort?

A.Recent changes to U.S. bankruptcy law have made it not only more difficult for consumers to file for bankruptcy, but these changes have also made bankruptcy less attractive.  The new bankruptcy law is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which became effective on October 17, 2005.

Difficulty obtaining credit following bankruptcy

People who file for bankruptcy may encounter significant obstacles obtaining credit after they have been discharged from bankruptcy.  Typically, a bankruptcy appears on an individual’s credit report for at least six years following a discharge from bankruptcy.

Personal bankruptcy as a last resort

Filing for Chapter 7 bankruptcy may involve the loss of most of a consumer’s assets.  Filing for Chapter 13 bankruptcy may require a bankrupt to repay certain debts over a period of many years.  Because consumer bankruptcy is harder to obtain today and less attractive than it was a few years ago, it should be viewed as a last resort.

Before you consider filing for bankruptcy, you may want to speak to Mark Silverthorn to discuss how to avoid bankruptcy. 

If you are a resident of New York state, you may request legal advice from Mark Silverthorn about your particular situation.  If you are not from New York state, Mark Silverthorn cannot serve as your attorney, but can assist you with practical non-legal advice where permitted by state law.  If Mark Silverthorn is not acting as your attorney, any information you provide to him will be kept confidential in accordance with the Privacy policy but it will not be privileged.