Occasionally, filing for bankruptcy is quite clearly the right solution. For example, if you’re
paying $3,000 to your creditors each month and your monthly income is only $4,000, then filing
for bankruptcy is definitely warranted. However, deciding whether or not to file for bankruptcy
isn’t always easy. If you’re on the fence, it’s a good idea to schedule a consultation with a
bankruptcy lawyer. An attorney can help you understand the benefits and potential drawbacks of
filing for bankruptcy, and answer all your questions about the legal process.
Identifying the Benefits
Bankruptcy is often an attractive solution to debtors because it provides an opportunity for a
clean slate. After filing for bankruptcy, you can get your personal finances back on track and
begin building a more sound financial future. For many people, money problems are a source of
considerable stress. You may find that filing for bankruptcy can help you breathe a little easier.
In part, this may be because your creditors will be automatically barred from contacting you
about your debt. Additionally, they won’t be able to garnish your wages, file a lawsuit, or seize
your assets. Another benefit of filing for bankruptcy is that you’ll likely keep all or most of your
assets.
Considering the Potential Drawbacks
For many debtors, the significant benefits of a successful bankruptcy far outweigh the
disadvantages. However, you should still discuss these potential drawbacks with your
bankruptcy attorney before you make your final decision. For example, a bankruptcy will remain
on your credit history for quite a while, although you can begin rebuilding your credit right
away. And depending on the type of debt you have, you may not be able to completely eliminate
it. For example, child support, alimony, student loans, and tax debt are not dischargeable.
At Cutler & Associates, Ltd., our bankruptcy attorneys offer a free consultation to provide our
clients with all the information they need to make an informed decision about bankruptcy. Even
if you’re not quite sure whether bankruptcy is right for you, we invite you to stop by our office to
learn more.