What are the Pros and Cons of Bankruptcy?

//What are the Pros and Cons of Bankruptcy?

What are the Pros and Cons of Bankruptcy?

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Bankruptcy is a legal way in which an individual can eliminate unsecured consumer debt. There are many benefits to filing for bankruptcy, but there are some disadvantages as well. As each individual case is different, we strongly advise you obtain legal representation from a skilled bankruptcy lawyer in Alpharetta who can review your individual circumstances and help you more accurately assess the pros and cons, and the impact on your financial future.

The lawyers at The Law Offices of Daniel W. Mitnick & Associates, P.C. have helped guide many individuals through the bankruptcy process to obtain true debt relief. We understand how devastating it can be to face the loss of your home to foreclosure. We also realize how difficult it is to have creditors continuously harassing you for payment, despite the fact that even though you have the best intentions, you lack the income to keep up. Our firm is here to help you come up with a viable solution to your financial woes.

Advantages to Filing for Bankruptcy

Some of the pros of filing for bankruptcy happen immediately. Part of the process includes an automatic stay on all collection efforts or impending debt-related legal actions. This court order halts all creditor actions against you, including:

  • wage garnishment
  • lawsuits
  • calls
  • letters
  • other forms of contact.

Filing for bankruptcy may help you avoid having your vehicle or other items repossessed. Bankruptcy can also be used as a highly-effective foreclosure defense.

Disadvantages to Filing for Bankruptcy

The fact that not all debt can be discharged in bankruptcy can be one of the less favorable points in filing. Filing for bankruptcy will also have a negative impact on your credit score and will remain on your credit score for between 7-10 years after your bankruptcy has been finalized. In Chapter 7 bankruptcy, people who own assets beyond the level of the state’s median, some assets could be liquidated to pay off debt. In most cases, our clients lose nothing other than the debts that they cannot pay.

To find out whether the pros will outweigh the cons for you, contact an Alpharetta bankruptcy lawyer at our firm now.

By | 2015-06-03T16:56:43+00:00 March 27th, 2014|Bankruptcy|Comments Off on What are the Pros and Cons of Bankruptcy?

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