Pros and Cons for Filing Bankruptcy

Filing for bankruptcy is never an easy decision. The truth is that it is an option that should only be used as a last resort when alternatives have already been exhausted. However, it’s also important to know about the pros and cons of filing bankruptcy.

Pros

When you file for bankruptcy, most of your debts can be discharged. This means that the debts are forgiven, and you don’t have to worry about paying them back.

Another pro of bankruptcy is that if you have bills you have been unable to pay, the debt may be waived. If you want to pay back those debts, however, Chapter 13 bankruptcy can help you by reorganizing the debts and consolidating them into a single lump sum payment.

Filing for bankruptcy can effectively stop collection agencies from calling and harassing you. The court puts an automatic stay in place that prevents creditors and collection agencies from trying to collect debt from you.

You can keep most of your property and assets when you file bankruptcy. Under Chapter 7, you can keep your home, jewelry, clothing and many personal items.

Your employer cannot legally take any action against you just because you have filed bankruptcy.

Cons

Not all of your debts are discharged when you file bankruptcy. Recent back taxes, student loans, alimony and child support and fines owed to the government remain in place.

You may lose certain non-exempt property when filing bankruptcy. Depending on your situation, you can lose your home, vehicle, cash, stocks and bonds.

Another con that comes with bankruptcy is that it will remain on your credit history for 10 years, which can make it difficult to qualify for a loan. Even if you do get approved for a loan, you can expect a higher interest rate.

Bankruptcy is also not cheap. You are responsible for paying filing and attorney’s fees as well as for credit counseling.

If you are planning on filing bankruptcy in Virginia, you need an experienced bankruptcy attorney in Hopewell VA. Canfield Wells LLP is there to protect your interests. A Henrico bankruptcy lawyer will ensure that your rights are protected every step of the way. Contact Canfield Wells LLP at your earliest convenience to discuss your case with a bankruptcy attorney in Hopewell VA. You will be able to get the ball rolling on your bankruptcy with a Henrico bankruptcy lawyer on your side.