Advantages of bankruptcy:
- One of the most important advantages of filing for bankruptcy is that debtors may obtain a fresh financial start.
- If you are eligible for Chapter 7 you may be forgiven (discharged from) most unsecured debts. A secured debt is one which the creditor is entitled to collect by seizing and selling certain assets of the debtor if payments are missed, such as a home mortgage or car loan.
- You may be able to keep (that is, exempt) many of your assets, although state laws vary widely in defining which assets you may keep.
- Collection efforts must stop as soon as you file for bankruptcy under Chapter 7 or Chapter 13.
- You cannot be fired from your job solely because you filed for bankruptcy.
Disadvantages of bankruptcy:
- A bankruptcy can remain on your credit record for 7-10 years and can affect your future finances.
- A bankruptcy may impede your chances of getting a mortgage or car loan for some time.
- Not all debt will be discharged. Some debt that cannot be discharged is child support, alimony, some student loans, divorce settlements and some income taxes. You should check with an attorney on the specific categories of debt that will be allowed for discharge.
If you are looking for an attorney to guide you through the bankruptcy process contact David Lutz at 248-624-5500 or visit our website www.ambrosebankruptcy.info