If you are considering bankruptcy, you should consult with someone experienced who can help you understand the benefits of all types of bankruptcy: Filing for bankruptcy is not a decision to take lightly. While there are many financial benefits to filing, there are also considerations that should be carefully considered before making a final decision.

Pros of Bankruptcy

• Bankruptcy offers a fresh financial start by discharging liability for most debts.
• Bankruptcy stops all collection actions by creditors, including foreclosures, repossessions, garnishments and harassment.
• In most cases, you can keep your house, car and other possessions that are reasonable and necessary.
• Filing can protect you from lawsuits and possibly remove liens from property.
• Taxes filed more than three years before filing for bankruptcy are often discharged.

Cons of Bankruptcy

• The bankruptcy will stay on your credit report for ten years, which can make it difficult to buy a car, house or insurance, without proper guidance on how to rebuild your credit.  We can help you with the steps you need to take to ensure effective credit repair after bankruptcy.
• Not all debts can be discharged including student loans, court fines, and child support.
• Bankruptcy does not discharge debts incurred after filing.
• All credit cards will be closed, even if the account is current, even it has never even been late.
• If the court determines that there are assets with value, you may not be able to avoid having those assets seized and liquidated without expert counsel and advice.

Retain Expert Advice to Assess the Pros and Cons of Bankruptcy

Remember that every financial situation is different and therefore, the pros and cons of bankruptcy should be weighed with the help of an experienced partner. At Cummings & Kelley, we take a problem solving approach to consumer and business bankruptcy and are committed to finding the most effective solution to the financial situations of every client. We will help you achieve the best results by maximizing the amount of debt you can be relieved from and protecting as much of your assets as you may be allowed.
For more information on making a decision on filing for bankruptcy, please contact us today.