Consumers who are considering filing bankruptcy are faced with a lot of questions and are often not sure what the advantages could be- if any. Besides the obvious advantage of not having the debt that hangs over their head everyday, are their any other advantages of potentially damaging your credit report for 7 to 10 years by filing bankruptcy?

There are many different aspects to consider before making a final decision. There are always options, but choosing the right option is not always easy. Below are some of the advantages that can help the consumer make thought-consuming decisions that are right for them. The advantages are not always the deciding factor but they can sure help you make a wise decision.

The Automatic Stay

One advantage is when the consumer files for Chapter 7 or Chapter 13 bankruptcy, a petition is filed and there is  what is called an automatic stay, which requires the creditors by law to cease all activities of collecting the debt. This means that they have to stop calling, leaving messages, or mailing you notices when they are notified of your intentions. Creditors can be penalized by the court system if their efforts continue. This type of situation is best handled by an attorney. Bankruptcy Attorneys are available for a free consultation to answer any and all questions that you may have. They will help you see the advantages that can be offered by Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy has it’s own set of advantages and disadvantages.

A Fresh Start

The advantage of obtaining a fresh financial start is another major benefit that a consumer should consider when deciding if filing a Chapter 7 is the best choice for them. Chapter 7 bankruptcy is a better option for debtors who have little or no property and mostly unsecured debts. You can choose what debts you wish to file Chapter 7 bankruptcy. This includes both secured and unsecured debts. Unsecured debts are those like medical bills and credit cards. A secured debt is when you have decided to use collateral that can include your home, car, or other major assets you have ownership of. Chapter 7 bankruptcy is also referred to as liquidation.

Call Firebaugh and Andrews today for a free consultation. 734-722-2999