When you’re trying to decide if filing for bankruptcy is the right thing for you, your family, or your business, there are a lot of things that you should consider. Everything has pros and cons, but when it comes to bankruptcy, people tend to only focus on the negatives. Craft Law Firm is here to provide you with a list of pros and cons of bankruptcy to help you determine if declaring bankruptcy is the right choice for you.
- You’re granted an automatic stay, and creditors cannot pursue any payments or take action against you.
- You’re relieved from handling multiple creditors.
- You will have a representative to help you.
- You could potentially keep some of your assets.
- Your back taxes can finally be addressed.
- It can prevent foreclosure on your home and/or repossession of your car.
- Debtors will be forced to settle for less than what you owe them.
- Some of your debts are entirely waived.
- Decisions are all final.
- It’s a fresh start for you, your family, or your business.
- Your credit score has the potential to increase.
- Federal student loans are usually NOT included in bankruptcy and getting them waived is rare.
- You could still be responsible for some of your debts.
- If you have joint accounts (for example, you and your spouse share an account), then the other party is still responsible for the debt.
- If you provide false or misleading information, you could face criminal charges.
- Bankruptcy tends to be a long process.
- You could end up losing your business.
- Bankruptcy reports are public (but laws are in place to protect you from discrimination).
- It will drop your credit score (but most people recover within 12-18 months).
- You may have trouble getting loans.
- You could lose your car with equity exceeding $8,500, or your home with equity exceeding $70,000.
If you are unsure if the Pros outweigh the Cons, sit down with an experienced bankruptcy attorney and discuss your options. Call Craft Law Offices at 252-752-0297 or visit craftlawoffices.com today to schedule your free consultation. Leslie Craft is here to help you take control of your life again.