Bankruptcy Pros and Cons

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Your bankruptcy attorney helps a lot of people who are having trouble managing their finances and can't see a way out of their debt. In some situations bankruptcy is a very wise solution and will give you a fresh start. For some people bankruptcy isn't the best idea, in fact for some it's not even an option at all. Learn the pros and cons of bankruptcy so you know if it's the right solution for you.

The Pros of Bankruptcy

The positive aspects of bankruptcy will instantly been felt by the filer. Those annoying and harassing collection calls will stop immediately. While the calls aren't harming your financial bottom line, they certainly add a level of stress to your life that you don't need. But more than just stopping the calls, an automatic stay is issued and your creditors cannot take further action against you, (almost) everything is put on hold until the bankruptcy is decided.

One of the biggest pros to bankruptcy is that it wipes out the majority of your consumer debts, giving you the opportunity to start over financially and hopefully better represent yourself in the future. It's an opportunity that not everyone gets so you should treat it with the proper amount of reverence and appreciation.

The Cons of Bankruptcy

Bankruptcy doesn't come without a few pitfalls, if it did then everyone would do it all the time. For some people the fact that a bankruptcy is public record is the worst part, it may feel like failure. But in an environment where unemployment is at record levels, medical bills are skyrocketing and the economy is unstable, who can really scoff at someone's financial misfortune.

Another downside to bankruptcy is that it negatively affects your credit. But if you're already having trouble paying your bills your credit has already been affected negatively; the bankruptcy lets you start rebuilding it immediately.

Each person's situation is different and your Chicago bankruptcy attorney can better explain your individual bankruptcy pros and cons.