A Prescott, AZ chapter 7 bankruptcy lawyer can imagine the stress you may be under, and questions about filing for bankruptcy should be answered by a reliable legal team. Although many people envision bankruptcy as the easiest way out of their financial troubles, you shouldn’t file without learning about the benefits and potential drawbacks first. Filing for bankruptcy is not a simple task. It should not be avoided just people the debtor is worried about what their friends, family, or employers may think. And after all, you don’t have to tell them unless you want to. Bankruptcy sometimes gets a negative connotation associated with it, when it can actually be a life-changing resource for some. Our team at the Wright Law Offices is ready to assist you further. We will begin by reserving you for a consultation.
The Benefits And Drawbacks
As with many big decisions in life, there may be good and not so good factors that you must consider before making a final choice. Your Prescott chapter 7 bankruptcy lawyer can walk you through the process of filing if you choose to pursue that route. But first, we will need to know more about your individual situation. There are six bankruptcy chapters, but not all will be suited for your circumstances. Every chapter is intended for either individuals, companies, municipalities, or more than one country. Here are examples of possible benefits and drawbacks of filing for bankruptcy:
- You get at least some of your debts discharged (but not automatically all)
- You will have an impact to your credit score and a bankruptcy mark on the credit report
- You may have to liquidate assets to pay for your debts
- You may have to partake in a 3-5 year repayment plan (but after this duration, some remaining debts may be eliminated)
- It can be difficult to get approved for loans in the short-term, but the long-term benefits may outweigh this
- After filing, creditors are not longer allowed to contact you about debts
- You can finally get on a secure path to restarting your financial stability into the future
After Filing For Bankruptcy
Once you declare bankruptcy, you will submit a petition to the federal court. After your bankruptcy petition is filed, creditors will be notified and must halt pursuing any debts that you owe them. The court will request more information from you, such as a complete list of your creditors, the total amount of debts owed, and accounting documents for your total income and outgoing expenses. As a Prescott chapter 7 bankruptcy lawyer has seen, filing for bankruptcy can provide people with the much needed relief after a long time of feeling burdened by debts. If you have questions about your financial situation and whether bankruptcy could be right for you, contact our team at the Wright Law Offices as soon as you can. Don’t let the negative stigma about bankruptcy prevent you from using this life-changing financial tool.