Declaringbankruptcyallows individuals or businesses that are unable to pay their debts to resolve their financial difficulties and start rebuilding their credit.
Filing for bankruptcy has many advantages and disadvantages, depending on your situation.
The advantages of filing for bankruptcy are:
- Filing for bankruptcy will trigger theautomatic stay, preventing creditors from taking action to collect their debts,prevent creditors from repossessing property such as cars, including calling you, suing you, or sending you letters. This also puts a stop to many evictions, foreclosures, wage garnishments and utility shutoffs.
- You may be able to discharge your obligation to repay any of your dischargeable debts.
- By using the bankruptcy exemptions, many debtors can go through the bankruptcy process without losing any of their property.
- While a bankruptcy filing will remain on your record for 7-10 years, because many debts can be discharged in bankruptcy, many debtors…