Are you interested in contacting us to learn more about the bankruptcy process? If so, you could be taking the first step in changing your financial life for the better.
But before you do anything, you need to be honest about the advantages and disadvantages associated with bankruptcy. In other words, you shouldn’t believe that this is all good and no bad. There are definite benefits, but at the same time you need to be familiar with a few key drawbacks.
The primary advantage of bankruptcy is the ability to quickly and efficiently deal with debt. For example, Chapter 7 will allow you to discharge some or all of the debt that has been holding you down.
Another advantage is the automatic stay. With this in place, creditors must cease all collection activity for the time being. Not only will this give you some breathing room, but it can also go a long way in providing enough time to devise a plan.
On the downside, bankruptcy will have a negative impact on your credit score. This will remain on your report for as long as 10 years, which can make it difficult to secure a loan, such as to buy a car, in the near future.
Additionally, bankruptcy doesn’t typically impact tax debt or student loan debt. You will still owe these debts, regardless of what happens with everything else.
It is important that you are honest with yourself in regards to the advantages and disadvantages of bankruptcy. You don’t want to talk yourself into thinking that there is no downside. Conversely, you don’t want to believe that everything about bankruptcy is bad.
If you have questions, if you need help deciding for or against bankruptcy, we can step in and provide you with professional assistance. This will help you better understand the pros and cons associated with filing.