Pros and Cons of Filing for Bankruptcy

A personal bankruptcy filing can help you get a fresh start, putting an end to the non-stop phone calls, letters and legal actions you face. There are consequences to filing for bankruptcy, though. Before submitting a Chapter 7 or Chapter 13 petition, you want to consider all the advantages and disadvantages, so that you make the decision that is best for you.

The Benefits of a Bankruptcy Filing

• For most people, the most important reason for filing for bankruptcy protection is to obtain the protection of the automatic stay. The automatic stay prohibits creditors from calling, writing or taking any other legal action outside the bankruptcy process to collect a debt. While the stay is in place, you can get caught up with some or many of your creditors.
• Filing for bankruptcy can actually help you get a quicker start on rebuilding your credit. Once creditors see that you have taken constructive action to resolve debt problems, they are often more willing to work with you and help you re-establish your credit.
• A Chapter 7 bankruptcy filing will allow you to permanently discharge some debts. This can free up the resources necessary so that you can meet your other financial obligations.
• Certain essential property is exempt from sale in a Chapter 7 petition, so you can discharge debts without losing your home, principal vehicle and other necessary items.
• Bankruptcy will stop garnishment, foreclosure and repossession proceedings.

The Consequences of Filing for Bankruptcy Protection

• You will lose all credit cards, unless they are paid off before you file, and you won’t have many opportunities for credit or credit cards for a while. In many instances, you can apply for new credit cards within 24 months, but may have to pay significantly higher interest rates.
• You may not be able to get a home mortgage for up to five years.
• You won’t be able to discharge all debts. Student loan payments, child support arrearages and certain tax debts cannot be wiped out in bankruptcy.
• Bankruptcy can carry an emotional stigma, but so can being sued for non-payment
• A bankruptcy will appear on your credit report for up to 10 years, making it hard to buy a car or  house, get life insurance or even a job
• Bankruptcy is a matter of public record. If you file, your name will appear in court documents and may appear in the local newspaper.

Take a Close Look before You File

Bankruptcy is not for everyone. If most of your debt is in student loans or tax arrearages, you may be limited to debt reorganization or need to look at alternatives to bankruptcy. For additional information, contact the  experienced bankruptcy attorneys at The Wright Firm in Dallas, Texas.

Call The Wright Firm Today at (972) 353 – 4600 and Book Your Free Consultation!

At The Wright Firm, with offices in Lewisville and Dallas TX, our attorneys are committed to obtaining great results for our clients. With varied backgrounds, diverse skills, and over 20 years of combined experience, all our lawyers are well-prepared to handle Texas Bankruptcy cases as well as family law matters, estate planning and probate matters, and criminal defense, including DWI.

Choosing a bankruptcy attorney to guide you through the process is a crucial decision.  At The Wright firm, we will do our best to show you that choosing The Wright Firm as your legal representative is the right choice.  Let us help you begin your journey to a fresh financial future.

Please call us!  Our attorneys will work with you to develop a strategy that is right for you.  We’ll help you evaluate your options using the Federal legal protection of bankruptcy, as well as discuss with you any non-bankruptcy options, such as debt and credit counseling, that may fit your unique circumstances.

Let our firm help you through your bankruptcy.

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