Benefits Of Filing Bankruptcy
If you have so much debt that it will literally take you 5-10 years to pay back the creditors, then you are a good candidate to file for bankruptcy. The simple reason is that the time it takes you to payback the creditors, you are already in danger of ruining your credit report and credit history. If that is the case that your credit report and credit history is inevitably damaged, why not save yourself the headache, and money of course, and file for bankruptcy. Since you will need to find a way to repair your credit, and you can “save” the money that you are planning to use to payback the creditors, it will turn out to be a “win-win” situation for you if you are in such dire financial situation.
Essentially once you have filed for bankruptcy protection, the creditors are legally required to stop hounding you for the repayment of the debt until the ruling of the bankruptcy court. When and if your bankruptcy case has been approved, the debt that you have listed in your bankruptcy petition will be fully discharged, meaning totally wiped out, which means you will never have to pay back the creditors. This is also a good way for you to start out fresh financially without having any debt having over your head.
Is Filing Bankruptcy A Good Idea
Hence we have finally come back to the main topic of this blog piece. Filing bankruptcy can be a good way to get rid of the heavy debt you have put yourself into. But there are definitely situations that filing bankruptcy is not the most ideal solution for your particular situation. Your best option is to talk to a bankruptcy lawyer to get all the pros and cons if you choose to file for bankruptcy protection. Filing bankruptcy is a life changing event and should never be taken lightly. Almost all the bankruptcy lawyers have free initial consultation which will allow you to get all the necessary information you will need. You have nothing to lose by talking to a bankruptcy lawyer to find out what you will be facing whether you are in the pre bankruptcy phase, or the post bankruptcy stage.