Bankruptcy Attorneys Resource Guide

Filing for Bankruptcy Pros and Cons

While bankruptcy is an unfortunate choice when it comes to rectifying your financial difficulties, it is sometimes the best option if you want to pull yourself out of debt and live a financially sound life. Consider the following pros and cons regarding filing for bankruptcy.

Pros

Halts your downward spiral

Whether you have your debt forgiven with the help of chapter 7 bankruptcy attorneys or are allowed to keep your property and pay off debts thanks to the assistance of chapter 13 bankruptcy attorneys, your descent into debt is halted by the proceedings. The same holds true if you consult with chapter 11 bankruptcy attorneys when filing for bankruptcy of your business.

Stops the creditors

Bankruptcy stops the phone calls. Once you file for bankruptcy, by law creditors must stop asking you for payment. No longer having the stress of collection calls allows you to better concentrate on how to best manage your financial situation.

Forgives most of your debts

If you file chapter 7 bankruptcy, most of your debt is cleared, giving you a clean slate on which to begin a new and hopefully more successful financial life. You usually are able to keep a few assets that fall into the exempt category when you file, such as your home.

Cons

Negative effect on credit

Current law dictates that the bankruptcy will show up on your credit report for 10 years. This negative mark on your credit will affect your ability to get loans and may even influence a potential employer’s opinion about whether you are right for a position, or a landlord’s decision whether to rent you an apartment.

Expense of filing bankruptcy petition

It costs money to file for bankruptcy. Your bankruptcy attorney will charge several hundred dollars, and there are also court fees.

Money problems may remain unsolved

If you have filed for bankruptcy, chances are your money management skills are lacking. If you don’t face head-on how you ended up living above your means and make some significant changes in how you handle your money, you may very well end up in the same predicament again.

Start your search for a better financial future with DexKnows listings for bankruptcy attorneys near you.