Filing bankruptcy is one of the most significant financial decisions you can make, so you need a thorough understanding of how bankruptcy laws will apply to your unique situation as you consider your options. Before you file, you should take into account bankruptcy’s benefits and drawbacks.

Bankruptcy Law Experts List Pros & Cons of Filing Bankruptcy

Benefits

Ideally, filing bankruptcy will provide you with some financial relief and help you get back on your feet. A successful bankruptcy petition will get rid of most of the debt you incurred prior to filing as well as some taxes owed. If you are granted an automatic stay, then creditors will no longer be able to garnish your wages. An automatic stay will also stop bill collectors from harassing you, which can do wonders for your peace of mind. Finally, bankruptcy laws can protect your home from foreclosure and reduce your car payment to more manageable levels.

Drawbacks

However, filing bankruptcy will not solve all of your problems, and it may create new ones. For instance, you could have your assets seized as a part of the bankruptcy process. You will also likely need court approval to incur new debt, so it will be very difficult to obtain a new car or home loan. Additionally, you will still have to pay back some debts, such as student loans. You may also lose government security clearance if you have it. Finally, your bankruptcy will become a matter of public record and will negatively affect your credit score for up to 10 years.

If you are considering filing bankruptcy, contact the law office of Brian Kawamoto in Aiea, HI. He has more than 25 years of legal experience and previously worked as an IRS tax attorney, making him the ideal candidate to deal directly with the IRS on your behalf. Call (808) 486-6107 to schedule an appointment or visit their website to learn more about bankruptcy law.