Categories: Personal Bankruptcy

What are the Pros and Cons of Bankruptcy?

Bankruptcy is often viewed as something negative that puts a stigma on your financial reputation. Though it is not the ideal situation in which to find yourself, it can be a tool to help you revitalize your current financial situation. It is an important decision, so before determining whether or not bankruptcy is right for you, consider the pros and cons of filing.

What Are Some of the Pros of Filing for Bankruptcy?

• Bankruptcy can discharge your unsecured debts
• Bankruptcy provides you with a fresh start or at least a chance to re-organize your current situation
• Bankruptcy triggers an automatic stay, which means debt collectors must stop contacting you
• Bankruptcy can make it possible to retain ownership of your home and other valuable possessions

Discharge of debts is allowed under Chapter 7 bankruptcy and releases a debtor from his or her obligation to repay unsecured debts. Bankruptcy is an opportunity to begin again and rebuild creditworthiness after prior problems. Not only can it help a person start over, it also makes the burden of current debt easier because he or she is no longer forced to deal with constant harassment from creditors. And because certain types of property are exempt, a person is able to maintain some stability in his or her life while getting back on track.

Of Course, Bankruptcy is not for Everyone. What Are the Cons of Bankruptcy?

• Fees and expenses associated with bankruptcy
• Potential loss of non-exempt property
• Inability to discharge all debts

There is no denying bankruptcy is a black mark on your credit report, but many would argue it is much less so than allowing problems to continue. Many lenders view bankruptcy as an effort to put an end to financial struggles and take responsibility for a situation. Further, in many cases your credit score can be high enough to qualify for conventional financing of a home or a vehicle.

Determining whether or not bankruptcy is right for you is a big decision. It can help to have the counsel of someone with expert knowledge, especially since every situation is different. If you would like to know more or you have questions about your situation and bankruptcy, contact the Law Offices of Robert M. Geller at 813.254.5696

Published by
Law Offices of Robert M. Geller, P.A.

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