Consequences of Filing Bankruptcy
With any decision, there are always consequences and opportunity costs. Bankruptcy is no different. The benefits of filing for bankruptcy outweigh the consequences. With bankruptcy, you can erase your outstanding debt, and start over with a debt free future.
Some potential consequences are the effect on credit history, the effect of reaffirming a debt, the ability to file another bankruptcy petition, and the effect of receiving a discharge. When and if your case is discharged, you will become free from personal liability for most of your debts and creditors will be forced to stop and start any legal of collection act against you. A consequence of Chapter 7 Bankruptcy is the possibility of loss of property, since chapter 7 deals with the selling of non-secure assets.
The advantages differ between Chapter 7 and Chapter 13 because of the way the payments are planned out. With a Chapter 7 Bankruptcy case, your court appointed trustee will sell all of your non-exempt assets in order to repay your debt. Although, Chapter 13 has extra benefits compared to Chapter 7. With a Chapter 13 filing, you have the opportunity to save your home from foreclosure and pay your mortgage payments over a longer period of time. Another benefit is the ability to reschedule the payments of your secured debts. This enables you to repay secured debts over the life of the current plan with low or no interest rates.
So if you are tired of creditors harassing you, call us today and fall under the protection of bankruptcy. Let us help you erase your debts and create new opportunities for a brighter future!
For more information please visit:
Bankruptcy 101
More Bankruptcy Articles
Credit Information
Please fill out our free evaluation form to determine if bankruptcy is right for you.
