Advantages and Disadvantages of Bankruptcy

Advantages and Disadvantages of BankruptcyBankruptcy is a confusing process, it is shrouded in so many rumors and myths that cause  people to doubt the reliability of the process and its ability to help relieve them from their debt situation. Bankruptcy in Florida can be incredibly useful, and our law firm loves to shine light on the advantages and disadvantages of bankruptcy in order to better help people understand if the process of bankruptcy is the correct decision for them. Whatever choice you come across it’s important to understand this: bankruptcy can be an incredibly useful strategy to help free you and your family from the grips, threats, and looming presence of creditors. You need a team of professionals with countless years of experience split between them to truly navigate and leverage bankruptcy in your favor; Bruner Wright P.A. offers just that solution! We have compiled a list below of the advantages and disadvantages of bankruptcy in order to add clarity to your decision making process; we’ll start with the disadvantages. 

Bankruptcy Remains on Your Credit

The process of bankruptcy does remain fairly visible on your credit report for years after you undergo the process.This can make a couple of things harder for you than they were before bankruptcy and these include: getting a mortgage on a house, qualifying for a loan for a new car, or even qualifying for an apartment lease! Things that require a credit check will become harder to qualify for due to the effect of the bankruptcy process. However, this can be rectified; there are many programs and strategies that are aimed at helping individuals recover their credit after credit dropping events. Options such as secured credits are incredibly useful when in pursuit of this endeavor and help to cushion this particular disadvantage.

Not All Debt Is Forgiven

Not all debt that an individual gathers will be dismissed if they qualify for a certain chapter of bankruptcy. There are certain debts, mostly items such as student loan debts, child support payments, and tax debt that are not forgiven in bankruptcy proceedings. It is important to stay aware of this if the majority of your debt comes from one of these categories.

Now we can move on to the various advantages of filing for bankruptcy proceedings!

Bankruptcy Helps Alleviate Debt 

The most well known and impactful benefit of bankruptcy is its ability to help you pay down or abolish your debts completely! Plenty of individuals fall victim to credit card debt annually, it is extremely easy to have that situation get away from you and start to rack up debt on your card balance. Another perpetrator of this problem is healthcare debt; so many people have fallen trap to not having enough medical insurance only to wind up with debilitating problems in the emergency room. As a result, they pay untold amounts of money out of pocket and accrue extreme amounts of debt. Bankruptcy is a wonderful solution for both these situations and has helped to improve the situations of millions of Floridians!

Bankruptcy Stops Harassment

Calls and text messages from creditors have become a daily experience for those who owe money; there is an entire industry dedicated to extracting and extorting funds from innocent people who happened upon a rough situation. Just because someone owes money is no reason to be harassed; bankruptcy is the perfect solution to finally get these firms off your back. 

Owing money can be an extremely intimidating situation to be in, when hiring a lawyer you need to find a firm that is reliable, experienced, and professional; they need to be able to produce past results to confirm that they can do the same for you. Bruner Wright P.A. prides itself on its ability to do exactly that; we believe that the only good attorney is a communicative one! Contact us today with any bankruptcy questions you may have!