The Pros and Cons of Filing for Bankruptcy in Gilbert: What are the Risks?

You may be struggling with debt, and you may know that bankruptcy can offer you immense debt relief. Yet you may not be sure that filing for bankruptcy is the right choice for you. You may have heard misinformation about bankruptcy, or you may be worried about the potential risks of filing for bankruptcy. Or you just may not understand the extent of the benefits that bankruptcy offers.

It’s important for you to talk to a Gilbert bankruptcy lawyer about the extensive pros and cons of filing for bankruptcy so that you can make the right choice for your circumstances. Here’s a closer look at what some of those pros and cons are:

Pros

Eliminate Debt

The biggest benefit of filing for bankruptcy, by far, is that you can eliminate debt. If you file for Chapter 7 bankruptcy, you can get rid of an unlimited amount of credit card debt, medical bills, and other unsecured debts. If you file for Gilbert Chapter 13 bankruptcy, you may be able to discharge some debt after you have finished your affordable repayment plan, which is based on your income and your debts.

Depending on your circumstances and the type of bankruptcy you file, you could be free of debt in as little as a couple of months.

Stop Foreclosure and Wage Garnishment

Once you get in over your head in debt, you start getting calls and letters from creditors constantly asking you to pay your debt. But if you had the money, you would pay. After a while, creditors may turn to other methods to satisfy the debt, such as beginning foreclosure proceedings on your home or garnishing your wages.

Filing for bankruptcy puts a stop to these collection efforts. You shouldn’t be contacted by creditors again, and your wages will no longer be garnished. You may even be able to come current on your house payments under a Chapter 13 bankruptcy plan or by clearing up money under a Gilbert Chapter 7 bankruptcy filing.

Easily Rebuild Credit

Many people worry that if they file for Gilbert bankruptcy, they will never get credit again. The truth is that a bankruptcy can stay on your credit record for seven to 10 years, but you can start getting approved for credit in as little as a year of your bankruptcy discharge. By making good choices and being consisted, you can start getting the credit you need quickly.

Maintain Assets

Another thing that many people worry about when filing for bankruptcy is whether they will lose essential assets, such as their house or their vehicle. Fortunately, Chapter 7 bankruptcy has exemptions for assets, which will allow you to keep these things if they do not exceed a certain value.

Cons

Stigma

Of course, there are some perceived drawbacks to filing for bankruptcy, and the stigma is one of them. Many people think that bankruptcy is only for “losers” and those who can’t make good decisions about money. However, the truth is that many people file for bankruptcy due to circumstances beyond their control, such as being laid off or getting ill or injured. But no matter what reason you have for filing for bankruptcy, it’s your business and it’s your right. No one has to even know that you filed for bankruptcy unless you tell them.

Credit Woes

As mentioned above, bankruptcy will cause a hit to your credit, and it will stay on your credit report for a long time. However, you can quickly build up your credit score and get approved for credit if you make good choices. You could buy a car or a house in as little as two years after filing for bankruptcy. Work with a financial advisor if you aren’t sure how to get back on the straight-and-narrow and stay there.

There are pros and cons to any decision, and it’s important you weigh them all to make sure that you are making a good decision. When it comes to bankruptcy, the pros usually outweigh the cons. It offers you the chance to get fast relief from overwhelming debt with few drawbacks. Talk to an experienced Gilbert bankruptcy attorney to learn more about bankruptcy and how it may be able to help you.

Gilbert Bankruptcy Lawyers can help you get the debt relief you need through bankruptcy. We’ll carefully analyze your finances and make recommendations about the best way forward to deal with your debt. We represent individual and business clients, and we can file both Chapter 7 and Chapter 13 bankruptcy for individuals. Contact us in Gilbert today to talk to a bankruptcy lawyer.

Published By:

Gilbert Bankruptcy Lawyers
Office: 480-448-9800
Website: https://gilbertbankruptcylawyers.com