Pros and Cons with Chapter 7 Bankruptcy

Unforeseen financial crisis or slow growing personal debt can take anyone by surprise. Unemployment, auto repairs, medical needs – each bringing unforeseen but formidable costs to your doorstep. Sometimes these factors create a situation where money coming in can’t actually cover all the accumulated bills. In this situation, many people turn to Chapter 7 Bankruptcy as a form of financial escape. Knowing whether that is the right course of action is another task entirely. Consulting with an experienced bankruptcy attorney is a smart option, but this post should get you started on some pros and cons when filing Chapter 7.

Pros of Filing for Bankruptcy

Bankruptcy many times may appear as a last resort which many do not wish to take. However, the stigma surrounding Chapter 7 is incorrect as it may in fact be a way to regain control over your finances.
Upon filing bankruptcy, creditors are no longer permitted to attempt to collect any debts owed to them until a case is resolved. This is one immediate pro many people notice right away, a stop to harassing phone calls that come at all hours of the day regardless if you are at work or home. By filing, an individual has bought valuable time to get their finances organized.

Many people fear that with Chapter 7 Bankruptcy, a loss of valuable assets is in their future. This is not necessarily true as working with an experienced attorney can reveal a strategy to both file and retain valuable assets.

To some, a huge pro to filing Chapter 7 Bankruptcy is an immediate halt of foreclosure procedures. This gives you precious time in your own home before making the next step. Patel Law Firm specializes in foreclosure defense as well as mitigation strategies to help you maintain your valuable assets.

Cons of Filing Bankruptcy

The most well-known con to filing bankruptcy is that the notice will in fact remain on your credit report from approximately 8-10 years. This mark can cause problems with future financial investments but it is important to remember that stable credit can be rebuilt.

It is possible that even after a resolved bankruptcy, individuals run into challenges with major purchases such as cars, homes or even financing. However, this situation will not occur every time an individual applies for additional credit. But more than likely, individuals could be subject to restrictions or even higher rates due to their financial history.

Many people fear the cost of legal assistance. At Patel Law Firm you will find the most economic prices available in the area, we work smarter so you can pay less. A cost analysis can be found on our price calculator page.
Seek Professional Help

Regardless of your stage in the Chapter 7 Bankruptcy process, it is well advised that you seek professional counsel to avoid serious errors. Patel Law Firm specializes Chapter 7 Bankruptcy including foreclosure defense and counseling on rebuilding credit. We utilize personal strategies to help our clients retain as much of their assets as possible and typically experience excellent results

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  1. […] the entire Northern Virginia area. According to the Eastern District bankruptcy courts, 2013 Chapter 7 filings in Northern Virginia were significantly lower than 2012. However, Mr. Patel asserts that these […]