Bankruptcy is one of the most popular options when it comes to resolving financial problems. The disadvantages of bankruptcy are not as obvious as they used to be. You must make some very difficult choices when you decide to declare yourself bankrupt. Here are some of the most important advantages of bankruptcy and how they can help you with your current financial problems.
The major advantage of declaring bankruptcy is that you will be left with no debt. This will be a huge advantage, especially if you have many credit cards and loans with your bank. Most of these are non-dischargeable, meaning that they cannot be sold. However, most of them are dischargeable if you are willing to sell them. Declaring bankruptcy will actually make your old tax debts (over three years old) disappear.
With a bankruptcy your credit will below. You will, however, be able to repair your credit rating after a year or so. The main disadvantage of filing bankruptcy is that it will stay on your public record for quite some time. This is not as bad as it used to be back in the old days when bankruptcy was a very controversial topic. Nowadays, however, many people think that filing for bankruptcy should be done very carefully because of its long-term effects on your finances.
If you are planning to file for bankruptcy, you will have to pay a very high total amount for your debts. This total amount will be about half of your entire income. However, your assets will not be sold off because they are considered to be exempt. This means that the government does not get any money from the sale. The only thing that you will lose with a bankruptcy filing is the salary that you would have made had you been working.
The fresh start offered by a chapter 7 bankruptcy is a chance to start all over again. All your debts will be paid off and you can start afresh financially. You can rebuild your credibility in the market. If you manage to pay off your debts within a few years, you can easily walk away with a total amount that is much smaller than what you owe to your creditors.
If you want to obtain financial freedom, filing for bankruptcy debt relief is certainly the best way to go about it. You can walk away from your creditors with your head held high. You do not have to worry about the huge amount of debt that you owe anymore. The fresh start that you get with this will definitely make you think twice about taking on another loan.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee Florida! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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