Contact Us


Declaring bankruptcy is a big deal involving various complex processes. Before you finally make the decision to file for bankruptcy, make sure it is not an impulsive decision. You must take a close look at your finances, your options, and possibly discuss them with financial experts. Armed with the right information, you must then weigh the pros and cons and decide whether filing for bankruptcy is your best option.

The Upside of Bankruptcy:

  • Although bankruptcy can get complicated and affect even your self-esteem, it will legally protect you from undue harassment from lenders. Automatic stay ensures that lenders cannot use aggressive or threatening means to collect debt from you after you have filed bankruptcy. That gives you some sort of reprieve from property repossessing, wage garnishments, eviction and foreclosures.
  • When you file for bankruptcy, you are automatically given the chance to reorganize and re-strategize in your finances. This gives you breathing space to come up with better plans as you come face-to-face with reality. It affords the debtor the opportunity to become financially responsible, especially without credit cards.
  • Sometimes, bankruptcy clears old tax liabilities older than three years. This is also applicable to other dischargeable debts.
  • With the bankruptcy exemptions, it is possible for a debtor to save his/her property throughout the bankruptcy process.
  • The credit counseling required for filing of bankruptcy allows the debtor to learn how best to plan, recoup and improve in your finances.
  • It is possible to actually improve your credit ratings after filing bankruptcy because some of the debtor’s debts are discharged during bankruptcy.
  • Bankruptcy is easier to explain than repossessions, missed payments or lawsuits. Most lenders will look more kindly on bankruptcy than the rest.

The Downside of Bankruptcy:

  • Your bankruptcy reflects on your credit report for between 7-10 years. This may adversely affect you for that time period.
  • Your application for mortgage or loan may be stalled if you recently filed for bankruptcy.
  • Depending on the type of bankruptcy you file, you may lose some of your possessions.
  • With bankruptcy, you lose all of your credit cards.
  • The bankruptcy process is often not an easy one. Defaulting on payment can create more problems for the debtor. Coming into inheritance or profit may cancel your relief.
  • You may meet a solid wall with employers or landlords when you have a recent bankruptcy. They may go through your credit report and decide against giving you the job or the apartment.
  • Certain loans like student loans, support orders and liens may be non-dischargeable following your bankruptcy.
  • There is some embarrassment and shame associated with bankruptcy. It may also look like the debtor is admitting defeat.

About Us

You may get confused as to the right course to take in bankruptcy. There are different types of bankruptcy that can suit different individuals and organizations. Having outlined the pros and cons of bankruptcy, it is advisable to contact an experienced bankruptcy lawyer who will assist you to make the right decisions and guide you through the process if you decide to file bankruptcy.

about our firm

Recommendations Legal Directory
Justia Legal Directory


Questions? Please reach out! We are here to help.