Last month, we gave an overview of Chapter 7 bankruptcy on our blog. As Chapter 7 bankruptcy lawyers, we here at JD Haas want to make sure that our clients are as informed as they can be before stepping into our office with the intent of declaring bankruptcy, or even simply to learn more about their options.


In that same blog, we scratched the surface on advising you if bankruptcy could be right for you or your business. While we stressed that only an individual appointment with a Chapter 7 lawyer or a Chapter 13 attorney can speak for your situation, we do believe that the question is nuanced enough to deserve its own blog post.


Below, we further delve into the intricacies of bankruptcy to determine if it’s a viable option for you or your business.

Take it From a Bankruptcy Lawyer: Bankruptcy Is Not to be Taken Lightly

While the idea of a monetary clean slate of sorts is appealing to many, legally declaring oneself or one’s business unable to pay its dues has notable consequences for your financial future. Though bankruptcy can provide much needed stress relief via its granting of automatic stay, and it also legally stops creditors from collecting debt you obtained before the bankruptcy, there are several potential consequences to declaring it, such as:


●        Loss of financial privacy. Filing for bankruptcy results in some of your financial information becoming publicly available. The government has even provided an online tool that facilitates the locating of bankruptcy court records. Certain information is retained from the public eye when it comes to bankruptcy cases, but the long and short of it is that anyone, future employers included, could theoretically both figure out that you declared bankruptcy and, to some degree, know how you financially got there.

●        Decrease in credit score. Generally speaking, declaring bankruptcy is not something that creditors view positively. Any debt lawyer will tell you that being declared legally unable to pay one’s dues tends to not reflect positively on your borrowing habits in the eyes of lenders; you might have a hard time qualifying for loans in the future.

●        Potential loss of property. Depending on what type of bankruptcy you file for, you very well could lose certain assets to repay your debts. Though certain items may be exempt from this, it’s important to consider how much you’d be willing to part with, if anything, for a financial clean slate.

Not Sure if Bankruptcy is the Way to Go? JD Haas Can Help

Our Minneapolis group of lawyers is ready to meet with you to answer any questions, and to listen to your story with a ready, compassionate ear. Give us a call today at 952-345-1025.