Filing for bankruptcy offers an array of advantages, but some of these benefits are more widely known than others. For example, many borrowers understand that a Chapter 7 bankruptcy will allow them to virtually eliminate most unsecured debt, but not how will impacts their immediate ability to save. O'Connor, Mikita & Davidson, an accomplished Cincinnati law firm, recommends considering the following before deciding whether bankruptcy is right for you.

3 Unexpected Advantages Of Filing For Bankruptcy

1. Rapid Credit Score Improvement

Immediately after filing, a borrower's credit score will immediately drop, often by as much as 130-250 points. However, with the conscientious use of credit and financial restraint, you can increase your score from this low point much more quickly than you would if you had been burdened with late payments and delinquent accounts.

2. Protection From Employer Discrimination

While some debt collections efforts may be hidden from employers, wage garnishments and similar actions will inevitably be brought to their attention. Depending on the industry you work in and your position, your employer may find that these decisions reflect negatively upon you. However, federal bankruptcy law provides protection for borrowers who file, ensuring that you will not be terminated or punished at work for pursuing a bankruptcy.

3. Lower Interest Rates

Falling behind on payments and having delinquent accounts can make obtaining additional credit nearly impossible, with high interest rates on any funds you are able to borrow. After a bankruptcy, your interest rates may still be high, but creditors will be more willing to work for you, knowing that you likely have the funds available and won't be able to file for bankruptcy again for several years.

The attorneys at O'Connor, Mikita & Davidson have over 20 years of experience helping borrowers reclaim their lives from debt. Call their offices at (513) 793-5279 to schedule a consultation, or visit their website to learn more about their bankruptcy services.