Bankruptcy Pros and Cons

The decision to file bankruptcy is a difficult one to have to make. People really want to be able to pay all their creditors exactly like they originally agreed. Sometimes unavoidable things happen that cause this to be impossible to do. That is when people file for Chapter 7 bankruptcy.

As with anything there are pros and cons to filing bankruptcy. Before you can really discuss these pros and cons you need to ask how does bankruptcy work.

Bankruptcy is an action you can take by filing with the bankruptcy court, the appropriate paperwork that proves you cannot pay the creditors you owe, the amount you owe them under the original terms. When you file for Chapter 7 the amounts you owe each creditor at the time of filing has a stay put on them to stop them from increasing any further. Creditors cannot add anymore lay payment fees or penalties to your account.

Bankruptcy Attorney Chicago, Bankruptcy Records, Kentucky Bankruptcy Lawyer,

When you file the creditors you owe must by law stop calling you or stop any actions such as wage garnishment or repossession. This even applies to wage garnishments that are already being withheld from your take home pay. This includes garnishments from the IRS.

A hearing will be held for you and your creditors to each have an opportunity to address the court about the money you owe. Your attorney attends this hearing with you. Most creditors do not attend these hearings.

After the filing of Chapter 7 all your debts that are eligible for discharge will be discharged. This leaves you owing those creditors no more money. Allowing you to rest easy at night.

One of the most frequently asked questions concerning bankruptcy is how long does it last? The bankruptcy can be on your credit report for up to 10 years. Your slate is wiped clean and you receive a second chance at establishing a good credit history.

There are many bankruptcy pros and cons to consider when you are trying to determine your course of action.

Pros: It only takes 3 to 6 months to complete the process of filing for Chapter 7. During this time period creditors are not allowed to call you or correspond with you about your debt. All garnishments and repossessions are stopped. You are releases from most of the debts you owe. Bankruptcy may be easier to explain to future creditors than the accumulation of late fees, defaults, repossessions and lawsuits might be.

Cons: A Chapter 7 bankruptcy could remain on your credit for as long as ten years. You will have to relinquish your credit cards. You could have to relinquish some of your luxury items to the bankruptcy trustee for liquidation. If you have taken a cash withdrawal from your credit card in excess of $750.00 in seventy days or less before you filed for Chapter 7 this amount may not be included in your bankruptcy estate.

Pros: Filing Chapter 7 can get you back on the path to good credit faster than if you struggle with repossessions and defaults. You will not have to relinquish or turn over to the bankruptcy trustee for liquidation all your personal properties and assets. Many things will be considered exempt from the bankruptcy estate. You will free up more of your money to be used on things you need right now. You will have the ability to rebuild your credit rating. If you do not qualify to file Chapter 7 it is likely that you will qualify to file Chapter 13.

You can file for bankruptcy online at your convenience. Filing online from your home allows you access to your bankruptcy law firm 24 hours a day. You will receive the same legal representation in court as you would receive from a walk in attorney office. The online attorney will handle all the filling out of necessary paperwork and the filing the correct number of copies of the paperwork with the court.

Cons: Bankruptcy will not get rid of some types of debt. Student loans and child support/alimony obligations are not discharged under Chapter 7. You will have to tell a bankruptcy trustee or bankruptcy court judge how your financial trials came to be. You cannot file for Chapter 7 but once every six years. You may still have some debt after the proceedings are finished.

Bankruptcy Attorney Jacksonville FL

Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.

Rating of Bankruptcy Attorney Jacksonville FL

Get Online Application at online Bankruptcy Lawyer.