Pros And Cons Of Filing Bankruptcy Protection

Bankruptcy by nature is not the most pleasant experience you will go through in your lifetime. Filing for bankruptcy can put an emotional strain on you and your family. It can have an emotional toll on people because of the stress of feeling inadequate and feeling at loss if you are ever going to be financially sound again. It might sound weird but there are definitely some benefit and drawback if you were to apply for bankruptcy shelter. If you are in over you head with debt that you cannot pay back the debt by all account, then bankruptcy is the first and foremost advantage. If bankruptcy only has advantages, then everyone under the sun would be filing for bankruptcy. The fact is that the truth cannot be further than the previous statement. Bankruptcy can ruin your credit history for the next 10 years.

Below is the list of advantages for filing bankruptcy:

Unsecured debt will be dismissed post bankruptcy

Bankruptcy allows you to get rid of the credit card balances that you have accrued over the years

Medical bills can be removed as part of the bankruptcy filing

Medical providers always ask you to sign a waiver form promising to pay the appropriate bills if the insurance company does not cover the cost. As part of the bankruptcy advantage, all the medical bills you have incurred will be erased post bankruptcy if your insurance company has not picked up the tab.

It is possible to retain your house

If you are filing chapter 13 bankruptcy, you have already made arrangements to pay back your mortgage loans, so you will certainly be able to keep your home. But if you are filing chapter 7 bankruptcy, there are bankruptcy exemptions that can apply to you. Through the use of bankruptcy exemption, you can potentially keep your home too.

Bankruptcy's automatic stay can prevent home foreclosure

Immediately following your bankruptcy filing, you will be granted automatic stay status. Effectively using automatic stay can prevent your mortgage lender from their efforts to foreclose on your house.

The entire bankruptcy process only takes less than 3 months

Under normal circumstances, a bankruptcy case usually can be completed within 3 months. This is comparatively easy and fast for a process that can help you eliminate most (if not all) of your outstanding debt.

Even though filing bankruptcy is not an optimal solution for anyone, it still possesses many more "advantages" than the disadvantages. Doesn't it makes you wonder how in the world is it possible to gain an an advantage for filing bankruptcy? On the flip side, the only disadvantage with bankruptcy is how it can affect your credit history for the next 10 years. It just makes sense for you to take benefit of the bankruptcy and eliminate your debt once and for all. You should always seek the counsel of a bankruptcy lawyer whether you feel it is to your advantage or disadvantage to file for bankruptcy. Bankruptcy is a serious matter and you should always consult with someone who knows the ins and outs of bankruptcy law.