There are both benefits and detriments to those considering filing bankruptcy. In my opinion as a Seattle bankruptcy attorney, the benefits significantly outweigh the detriments to those considering filing bankruptcy. This article entitled the benefits of filing bankruptcy discusses some of the benefits. If you are considering filing chapter 7 or chapter 13 bankruptcy, you should speak to a bankruptcy lawyer to best asses your situation.
Some of the benefits of filing bankruptcy include discharging a significant amount of unsecured debt such as credit cards, medical debt, or payday loans among other things. Chapter 7 bankruptcy allows you to receive a fresh start without having debt hanging over your head forever. For those who don’t qualify for a chapter 7 bankruptcy due to income or the inability to protect an asset, they may want to consider filing for chapter 13 bankruptcy. A chapter 13 bankruptcy allows those who don’t qualify for a chapter 7 bankruptcy due to a high income or a wish to protect certain assets to go on a re payment plan in which debtors will pay a percentage of their unsecured debts back to creditors. The amount paid back will be determined by your family size, income, assets, and other payment obligations. A chapter 13 bankruptcy may also be utilized to make up payments on your home if you have fallen behind and are facing a foreclosure. A chapter 13 bankruptcy may be filed at any time prior to a foreclosure sale and it will stop the foreclosure sale allowing you to make up your payments over a 60 month period.
The only real detriment of filing bankruptcy in most cases is that a bankruptcy will go on your credit report and stay there for up to 10 years. With that said most people filing for bankruptcy do not have good credit in the first place so the impact will be minimal. Those who file for bankruptcy can qualify for home loans in 2-4 years of filing bankruptcy and after a debtor files for bankruptcy they will be mailed several offers for new credit cards and car loans, albeit at higher interest rates than they may have enjoyed in the past. Your can always repair your credit, so if you can discharge a significant amount of debt in exchange for not having good credit for a little while I believe the benefits usually outweigh the burdens of filing for bankruptcy.
If you have additional questions regarding the benefits of filing for bankruptcy please contact Symmes Law Group at 206-682-7975