Pros and Cons of Filing Bankruptcy

Filing bankruptcy is a double-edged sword. While it can be beneficial to you, it can also cause a lot of problems. This is why it’s important that you understand bankruptcy and to study all your options before deciding whether to file it or not.

Guide to Bankruptcy Types

When you've gotten into debt, it can be tough to dig yourself out of it. While it's recommended that you try other means of removing yourself from debt, there might come a time when you have no other options except to declare bankruptcy. This is something that can only be established through a state or federal court.

When Can't Debts Be Collected?

If you have just received a phone call from a debt collector, it doesn't mean that you owe that collector any money. In some cases, the call has been made in error because you have a similar name to another debtor or because you have a phone number that used to belong to a debtor.

Get the Help That You Need Today

Making the decision to file bankruptcy can be very challenging, but you should not have to navigate the legal process of filing for bankruptcy alone. A qualified and experienced bankruptcy attorney can give you sound advice and solid guidance throughout the process that will leave you in as good as shape as possible at the end of the process. Bankruptcy laws are complicated, and they vary from state to state. A bankruptcy attorney will work with you in order to help you decide what Chapter of bankruptcy makes the most sense for you in your situation.

Shield Yourself from Illegal Collection Activities

When an individual owes a valid debt, the lender or holder of the debt may contact that person in an effort to collect payment. However, there are limits as to what that collector may do. You cannot be contacted before 8 a.m. or after 9 p.m. unless you give whoever is contacting you permission to do so. Debt collectors are also barred from threatening to take legal action for nonpayment if they do not intend to do so.

The Basics of Chapter 7 Bankruptcy

If you have chosen to file for Chapter 7 bankruptcy, you are asking creditors for a straight liquidation. A trustee will take an inventory of your assets and then use any money collected to pay off your creditors. In some cases, you may be able to get through the bankruptcy process without paying your creditors anything.