Bankruptcy: Positives and Negatives of Filing

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Bankruptcy: Positives and Negatives of Filing

No one wants to be viewed as compulsive. We all know that there are times when making one more “to do” or pros and cons list is simply not productive. But there is a time and a place for everything and if there’s one time and one place when making a pros/cons list is absolutely productive, it’s when you have a major, potentially life changing decision on your hands. For instance…bankruptcy.

Pros and Cons of Filing for Bankruptcy:

Pros:

  • Immediate stop to all attempts at collection
  • Eventual discharge of debt
  • Bankruptcy can provide protection for your home, car, etc. against unsecured debtors
  • In some circumstances, IRS debt can be included in the bankruptcy

Cons:

  • Student loans, spousal and child support and loans on property in which the creditor has a lien cannot be discharged
  • Bankruptcy remains on the credit history for 10 years inhibiting ability to obtain new credit

Your specific situation may have additional pros or additional cons. Your list of cons may end up far outnumbering the list of pros or vice versa. Remember once your pros and cons list is completed that quantity is not the only measurement. Make sure that your pros not only outnumber your cons, but that they outweigh them. For some, the debt is so overwhelming that no matter how many cons there are on the list, the simple fact that their debt could be discharged will outweigh them all.

For additional help in determining your eligibility for bankruptcy filing or to discuss what will best suit your financial situation, please get in touch with the expert bankruptcy attorneys at Westgate Law today.

About the Author

Justin Harelik

Justin has a singular goal: to get people out of financial distress and move them to financial stability and prosperity. He does this by combining 15 years of in-depth experience in bankruptcy, credit management, debt negotiation and student loan modifications, and he does it with both English and Spanish-speaking clients.

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