Long-term unemployment, medical emergencies, and bad investments can cause anyone to fall further behind on their bills. For borrowers struggling to meet their financial obligations, chapter 7 bankruptcy can provide welcome relief and a second chance at life. However, there are some disadvantages you should be aware of before deciding to file.

The Pros

Chapter 7 Bankruptcy allows struggling borrowers to completely discharge most unsecured debt, including credit cards and unpaid medical expenses. You may also be able to eliminate some back taxes, store lines of credit, and other accounts, offering the opportunity to start rebuilding your financial life. Filing a chapter 7 bankruptcy also triggers an automatic stay, which puts an immediate stop to any collections efforts on the part of your creditors. If you’ve been subject to harassing phone calls or facing repossession, bankruptcy can provide valuable peace of mind.

The Cons

While bankruptcy protection does have significant advantages, it will likely impact your score for several years. Most filers with an average credit will see their rating drop by at least 100 points, while those with higher initial numbers see a more dramatic effect. Despite this fact, the long-term consequences of missing payments and having several accounts go into default can often be more severe. Many borrowers find that they’re able to begin rebuilding their credit within a few months by demonstrating financial responsibility.

Since 1983, borrowers throughout the Statesboro, GA, area have relied on Lovett Bennett Jr., Attorney at Law, for legal solutions to a wide range of financial problems. They take the time to help you understand the options and give you the personalized attention you need. Visit their website or call (912) 764-3122 today to schedule a consultation and discuss bankruptcy with an experienced attorney.