Is Filing for Bankruptcy a Good Idea? Understanding the Benefits and Disadvantages of Bankruptcy
When you are in significant financial trouble, filing for bankruptcy may be a viable option to help alleviate your economic pains. However, filing for bankruptcy is not something you should engage in without thorough consideration, as well as advisement from a financial or/and legal professional. The following considers some of the benefits and disadvantages of filing for bankruptcy in Michigan.
The Benefits of Filing for Bankruptcy
Obviously, one of the biggest benefits of filing for bankruptcy is that in doing so, you can remove yourself from the burden that is crushing amounts of debt. By filing for bankruptcy, you will trigger the automatic stay, which means that creditors will be legally barred from contacting you in regards to debt collection. You can also discharge a significant number of your debts by filing for bankruptcy, which could be the fresh start and clean slate that you desperately need. Filing for bankruptcy may help you keep your house if you are facing foreclosure, as well as other important assets that you need. The relief of debt discharge is very significant, and may be the only way that you are able to move forward in your life.
The Disadvantages of Filing for Bankruptcy
While filing for bankruptcy can be a huge relief, it is not without disadvantages. For one thing, filing for bankruptcy will stay on your financial record for seven to 10 years, and can significantly impair your credit and your ability to qualify for a loan, mortgage, or credit card until the conclusion of the 10 years. Another thing to consider is that depending upon the types of debt that you have, filing for bankruptcy may not do much to alleviate your financial woes; many debt types, like student loan debt, are non-dischargeable, meaning that you will be liable for the debt regardless of whether or not you file for bankruptcy.
Finally, filing for bankruptcy can affect others’ perception of you – a lender, landlord, or employer may be reluctant to work with you based on your poor financial history.
Learn More About Filing for Bankruptcy in Michigan
Significant amounts of debt can be overwhelming, and it can feel as though you are drowning in financial troubles and have nowhere to turn. When this is the case for you, you should seek counsel from an experienced Michigan bankruptcy lawyer. A lawyer can advise you regarding the benefits and disadvantages of filing for bankruptcy, and can also help you with debt negotiation or consolidation, understanding the different types of bankruptcies, and your rights as a consumer when dealing with creditors.
At the Van Den Heuvel Law Office, our experienced bankruptcy attorneys are here to represent you and guide you when it feels like all financial hope is lost. To schedule a free case consultation, call our law offices today at 616-698-0000. You can also contact us online.