Should I file Bankruptcy?
The decision to file for protection under the Bankruptcy Code is one of the most difficult decisions a person or family can make. We find that our clients' biggest concerns are (1) the impact bankruptcy will have on their credit score , (2) their ability to acquire financing post-bankruptcy and, most often, (3) personal moral dilemmas associated with not repaying their creditors.
The reality is that most people who are looking into bankruptcy are in a situation where their options are very limited. Typically, any person considering bankruptcy is facing a rapidly declining credit score and dealing with accounts which are accruing late fees and interest faster than the accounts can be paid down. Many people ultimately decide that filing bankruptcy and getting a fresh start is in their best interest and the best interest of their family. It is the right of every taxpaying United States citizen to be afforded the protections and benefits under the Bankruptcy Code.
Whether or not to file bankruptcy is a business decision. One thing people considering bankruptcy often forget is that when most creditors extend credit, they do not make this decision based on moral, ethical or other personal considerations. People must remember that creditors extend credit in order to make profits and no other reason. Most large and/or institutional creditors understand that a certain percentage of the credit they extend or monies they lend will never be repayed; this is part and parcel of their business model. Please do not feel bad for large, institutional creditors if you don't have the ability to repay them; they will continue to make enormous profits each year by charging offensive interest rates on the credit they extend to borrowers.
Benefits of Bankruptcy:
- Stops all harassing creditor calls and other contacts in attempt to collect a debt
- Allows for the "discharge" of most, if not all of your debts. This means that you are no longer legally obligated to pay any of the debt amounts
- Prevents property from being repossessed, or it may require creditors to return property that was taken
- Stops wage garnishment
- Stops levies on financial accounts
- Stop pending lawsuits
- Halts the foreclosure process and gives you time to catch up on payments. This means you will not necessarily lose your home