Bankruptcy by nature is not the most enjoyable experience you will go through in your lifetime. Filing for bankruptcy takes a lot of out of a person emotionally. It can have an emotional toll on people because of the stress of feeling inadequate and feeling at loss if you are ever going to be financially sound again. It might sound weird but there are definitely some benefit and disadvantage if you were to file for bankruptcy shelter. The clear benefit that bankruptcy provides its the power to eliminate the debt that has been dogging you for a long time. The downside or drawback to filing bankruptcy is that your credit history (or credibility with the creditors) are shot for the next 10 years.
Below is the list of advantages for filing bankruptcy:
Unsecured debt will be dismissed post bankruptcy
With the issuance of the bankruptcy discharge papers, you can effectively have all your credit card debt wiped off and not have to pay a single dime.
Medical bills can be removed as part of the bankruptcy filing
You have unquestionably sign those waiver forms promising to pay the doctors for their consultation. Bankruptcy allows you to forgo all the payments to the medical providers.
It is possible to retain your house
If you are filing chapter 13 bankruptcy, you have already made arrangements to pay back your mortgage loans, so you will certainly be able to keep your home. As part of the chapter 7 bankruptcy process, you can try to use bankruptcy exemption in relations to your house. It is possible for you to keep your home if you can classify this asset as an exemption in your filing.
Bankruptcy can stop house foreclosure by the mortgage lender
Once you have filed bankruptcy, you will be given the automatic stay status which prohibits the creditors from taking any legal actions against you. Effectively using automatic stay can forbid your mortgage lender from their efforts to foreclose on your house.
The entire bankruptcy process only takes less than 3 months
Under normal condition, a bankruptcy case usually can be completed within 3 months. Considering this is a rather hard and complex resolution to eliminate most (if not all) of your debt, 3 month waiting period is really a walk in the park.
As you can see, there are many “advantages” to filing for bankruptcy shelter. When you speak of benefit, you normally strive for that advantageous situation. Why would anyone strive for advantage for bankruptcy? Your credit history is certainly affected when you filed for bankruptcy and that presents the disadvantage for this legal process. It just makes sense for you to take benefit of the bankruptcy and eliminate your debt once and for all. Whether you find it advantageous or disadvantageous to apply for bankruptcy, the whole proceeding should be handled with care by a qualified bankruptcy attorney. Bankruptcy should definitely not be taken lightly and therefore it is only wise for you to seek the help of a bankruptcy attorney.
Steve Sanchez has recently overcome the economic depression of 2008-2009 by declaring bankruptcy. Even though bankruptcy has devastated Steve financially and emotionally, Steve has rebuilt his businesses in the last 6 months and he has not looked back since.One of his project is to educate people on bankruptcy. Having gone through the ordeal himself, he has first hand knowledge of the pros and cons of filing for bankruptcy protection. Please visit his site http://ToFileBankruptcyOrNot.com if you want additional information regarding bankruptcy.