Pro’s and Con’s to Bankruptcy

by ParkmanLawFirm on June 20, 2013

Bankruptcy has the power to wipe away all or most personal and company debt, but it is not without side affects. Bankruptcy will affect your credit score negatively for several years to come. The process is long and complicated but an experienced Birmingham attorney at Parkman & White will help you every step of the way.

Every bankruptcy situation is different. However, in general filing for bankruptcy can:

  • Allow a clean slate
  • Prevent eviction and foreclosures
  • Stop creditors from harassing you with letters and phone calls
  • Stop wages from being garnished
  • May allow you to keep your property
  • Help with tax obligations

Bankruptcy should be the last option available to for both an individual and a company. Alternatives to bankruptcy include debt settlement and debt consolidation, both should be attempted before filing for bankruptcy.

The downside to filing for bankruptcy include:

  • Difficult to get a mortgage
  • You will lose most or all of your credit cards
  • Bankruptcy will remain on your credit report for up to 10 years
  • Bankruptcy is a public record and your name will appear in court related documents

Ultimately bankruptcy is a very helpful and powerful tool. You and an experienced bankruptcy attorney will need to go through all of your personal finances and debts in order to create the best plan for you moving forward.

 

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  • Do not be embarrassed about going into bankruptcy. Although the process can be stressful, you must be decisive, accurate and can did about your decision. If you have done research and concluded that bankruptcy is the right course for you to take, view it as getting your financial affairs in order instead of a failure.

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