Most people equate “bankruptcy” to “disaster.” However, declaring bankruptcy doesn’t always have to be the worst thing in the world. Learn some benefits that declaring bankruptcy may provide you.
Does Declaring Bankruptcy Have Any Positives?
Life happens. Sometimes, declaring bankruptcy is your only viable option. Some people may try to avoid declaring bankruptcy at all costs. However, there are some situations where declaring bankruptcy may actually help you.
There are some upsides to declaring personal bankruptcy, also known as Chapter 7 or Chapter 13 bankruptcy. First and foremost, declaring bankruptcy absolves your debt and gives you a fresh start. Additionally, declaring bankruptcy initiates an automatic pause on your debt. This means that lenders and debt collectors can no longer contact you. The automatic pause can also delay foreclosure and repossession.
It’s important for you to weigh the benefits and costs of declaring bankruptcy. For example, you may expect the following costs while declaring bankruptcy:
- Filing fees
- Attorney fees
- Increased insurance rates
- Negative impact on credit score for several years
If you have a significant amount of debt that you cannot see yourself ever repaying, then the costs associated with declaring bankruptcy may be worth it in the long run. On the other hand, if you only have a couple of thousand dollars worth of debt, then this process may not be the best option for you.
Bankruptcy is complicated and requires the guidance of a seasoned legal professional. Our attorneys at Pearson Butler can guide you through the process and help you come to a solution that works best for you.
Call Pearson Butler at (800) 265-2314 to schedule a free consultation.