What are the Pros and Cons of Filing Personal Bankruptcy?
Filing for bankruptcy is a good option if you want to clear out many of your debts at one go. But you have to consider the consequences of this process as well. If you are thinking of filing for bankruptcy, consider consulting a bankruptcy lawyer in Orange County, as he/she will be able to guide you with the benefits as well as problems of the process. But, even before that, just take a look at its pros and cons, mentioned here in a quick list –
Pros:
1. You don’t need to deal with the multiple creditors any longer – all the hassles and the stress are gone.
2. Many of your debts are discharged, which means you don’t have any responsibility for paying them off.
3. Since the court will put an automatic stay, none of the creditors and organizations to whom you owe money, would be able to call you or send any letters claiming the payment. They will be automatically restricted from doing these things.
4. Though most people think that filing for bankruptcy means losing all their properties, it’s not quite so. If you file for Chapter 7, you will be able to keep properties like clothing, house, and jewelry according to the rules of Bankruptcy Exemptions.
Cons:
1. Though most of your debts will be cleaned up, you will still have some to pay back. Debts like student loans, child support, alimony, most recent taxes and fines that you owe to government agencies etc will always be there.
2. It creates a huge negative impression on your credit history. It becomes just next to impossible to get a loan approved in future. And even if you manage to get one in a way or the other, you will have to pay unbelievably high rates of interest.
3. The process is quite costly as you have to pay lots of fees.
So, before you go ahead and hire a bankruptcy lawyer in Orange County, make sure to weigh the pros and cons in order to take an informed decision.
Pros:
1. You don’t need to deal with the multiple creditors any longer – all the hassles and the stress are gone.
2. Many of your debts are discharged, which means you don’t have any responsibility for paying them off.
3. Since the court will put an automatic stay, none of the creditors and organizations to whom you owe money, would be able to call you or send any letters claiming the payment. They will be automatically restricted from doing these things.
4. Though most people think that filing for bankruptcy means losing all their properties, it’s not quite so. If you file for Chapter 7, you will be able to keep properties like clothing, house, and jewelry according to the rules of Bankruptcy Exemptions.
Cons:
1. Though most of your debts will be cleaned up, you will still have some to pay back. Debts like student loans, child support, alimony, most recent taxes and fines that you owe to government agencies etc will always be there.
2. It creates a huge negative impression on your credit history. It becomes just next to impossible to get a loan approved in future. And even if you manage to get one in a way or the other, you will have to pay unbelievably high rates of interest.
3. The process is quite costly as you have to pay lots of fees.
So, before you go ahead and hire a bankruptcy lawyer in Orange County, make sure to weigh the pros and cons in order to take an informed decision.