' Advantages of Bankruptcy - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Costs and Benefits of personal bankruptcy

Many people who are struggling financially wonder if filing for personal bankruptcy is a good solution for them. Whether bankruptcy is right for a person will depend on a number of factors that are unique to each person’s situation. Filing bankruptcy can offer several advantages, but it also may have some costs.

Advantages of Personal Bankruptcy

The main advantage of bankruptcy is that it offers individuals a chance to start over financially. Most people who file for bankruptcy will be able to get most types of debt completely discharged.

Filing bankruptcy also prevents creditor harassment. An automatic stay is immediately imposed upon filing for bankruptcy to give debtors necessary time to review their current financial situation. This forbids creditors from continuing any collection efforts, and therefore stops or delays foreclosures and evictions, utility turn-offs and wage garnishments. Creditors who attempt to collect debts after an automatic stay is imposed face strict consequences. They may potentially be charged with contempt of court or found liable for damages.

A Chapter 7 bankruptcy offers elimination of all unsecured debts. These are debts for which the debtor has not pledged any property as collateral. Secured debts are debts for which a debtor pledged a specific item of property as collateral, such as a mortgage or car loan. Secured debts can usually not be discharged in bankruptcy. Bankruptcy also usually allows people to keep their property.

Although a bankruptcy does not eliminate secured debts on property, liens can often be discharged or reduced if they are greater than the property value. A Chapter 13 bankruptcy may also give people the ability to catch up on delinquent mortgage payments, allowing individuals to retain their property.

Disadvantages of Personal Bankruptcy

One of the main disadvantages of bankruptcy is its effect on a person’s credit score. A bankruptcy can stay on a person’s credit report for up to ten years, which may makes it temporarily more difficult to make major purchases.

However, bankruptcy is often only one factor creditors consider when deciding whether to grant credit. Today bankruptcy is more common than in previous years, and creditors are frequently willing to disregard a bankruptcy filing from several years ago.

In addition, bankruptcy cannot eliminate all types of debt, and therefore may not be the right solution for everyone. For example, secured debts, student loans and tax debts are often not dischargeable in bankruptcy.

An individual considering filing for bankruptcy can benefit from speaking with an experienced bankruptcy attorney. The attorney can tell you whether bankruptcy is right for your situation, prepare your bankruptcy petition and set you on the path towards achieving your future financial goals.

Video Testimonials

Tampa Bankruptcy Law Blog

Do Both Spouses Have to File Bankruptcy?

For some couples, filing for bankruptcy is the best way to get out from under crippling debt. But what if...
Read More

Will Bankruptcy Ruin My Life?

Bankruptcy is a legal solution for people struggling with unmanageable debt. It can be a difficult decision to make. In...
Read More

Can Bankruptcy Take Inheritance?

Are you considering bankruptcy? Do you have concerns about your assets? Can bankruptcy take your inheritance? Here’s what you need...
Read More

Can You Go to Jail for Filing Bankruptcies?

Bankruptcy is a difficult decision. However, it can be necessary if you are struggling with debt. This is true whether...
Read More

Can You File Bankruptcy If You Don’t Have a Job?

Filing for bankruptcy is an intimidating prospect. Unemployment adds another layer of complexity to the situation. Can you file for...
Read More

Who Pays for Bankruptcies?

When a debtor files for bankruptcy, the court discharges the majority of their debt. This means that the creditors must...
Read More

Do You Have to Go to Court to File for Bankruptcy?

If you are considering filing for bankruptcy, one of the biggest questions you may have is whether or not you...
Read More

Can You Rent After Bankruptcy?

Filing for bankruptcy can be an overwhelming experience, and it’s important to understand the implications of this process before you...
Read More

Can You File Bankruptcy on Unemployment Benefits?

If you’re considering filing for bankruptcy due to financial hardship, it can be helpful to understand the various options available....
Read More

Do Bankruptcies Show Up on Background Checks?

The decision to declare bankruptcy can be difficult, and it is important to be aware of the potential consequences. One...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions