Bankruptcy has a lot of negative stigma around it. That’s mostly due to the old saying “people are scared of what they don’t understand.” Nobody really knows much about the pros and cons of filing Chapter 7 bankruptcy, so we want to clarify some things.
Pros and Cons of Filing Chapter 7 Bankruptcy
Bankruptcy can offer a variety of benefits. If you file Chapter 7 bankruptcy, you can:
- Immediately stop any repossession actions
- Save your home from being foreclosed on
- Repay some of your debts
- Stop all collector harassment, such as mail and phone calls
- Completely discharge most or even sometimes all of your debt
- Get a fresh start
Along with the benefits, there are a few things which could be viewed as negatives, including:
- Chapter 7 bankruptcy will show up on your credit report for 10 years
- You may have to surrender some assets (although most who file Chapter 7 never do)
- Filing bankruptcy will make it more difficult to get credit for a while
Filing Chapter 7 bankruptcy is often the best solution for anyone looking for a fresh start. After filing bankruptcy, you may find it difficult at first to get credit, but in the long run, you’ll be better off. After discharging your debts, it will be so much easier to rebuild your damaged credit.
The Manalapan bankruptcy attorneys at Garland & Mason LLC have years of experience and can help you find the best solution to your debt problems.