PROS & CONS OF BANKRUPTCY

YOUR DEBTS ARE ELIMINATED

Bankruptcy can eliminate most consumer debts, such as credit cards, medical bills, personal/payday loans, cell phones, repossessions, lawsuits, and utility providers.

YOUR WAGES WON’T BE GARNISHED

Wage garnishment occurs when creditors have obtained a judgment against you in a court of law, they can garnish your paycheck for up to 25% of your income less state and federal taxes. However, the automatic stay that bankruptcy provides will stop creditors from taking your money.

PREVENT YOUR UTILITES FROM BEING SHUT OFF

The bankruptcy automatic stay applies to utilities and keeps your water, gas, and electricity from being turned off.

RELIEVES STRESS CAUSED BY OVERWHELMING DEBT

Debt is a part of everyday life. However, overwhelming debt can cause stress and anxiety, which can lead to various health problems, as well as relationship problems. Bankruptcy can relieve your financial burdens and allow you to get your life back to normal.

INSTANT RELIEF FROM CREDITORS

Bankruptcy instantly prevents bill collectors from contacting you once your petition is filed. If a creditor attempts to contact you after you have filed, they can be held in contempt of violating the automatic stay.

YOU GET A FRESH START

Filing bankruptcy can help you get a “fresh start” on your financial matters by erasing all your debts. You can immediately begin rebuilding your credit, saving money, and making financial decisions that will allow you to prosper in your everyday living.

Filing Bankruptcy has some drawbacks that you should consider:

CREDIT REPORT 

A Chapter 7 bankruptcy will remain on your credit report for 10 years after you receive your discharge. A Chapter 13 will remain on your credit report for 7 years.

CREDIT CARD ACCOUNTS WILL BE CLOSE

All of your credit card accounts will be closed once you file bankruptcy, this includes those accounts that you were current on or wish to keep. However, once you get your discharge, you can open new accounts.

STUDENT LOANS ARE NOT DISCHARGEABLE – IN MOST CASES

Under the current law, it is still practically impossible to discharge your student loan debt in most cases.