Pros And Cons Of Filing Bankruptcy

I  like to create lists when I am thinking about the positives and negatives of doing something. It could be buying a vehicle or hiring a professional etc. If you are contemplating filing bankruptcy, I would want to know what are the pros and cons of filing bankruptcy.

     Some of the pros of filing bankruptcy are as follows:

• Debt is gone fast
• Debt is gone tax free
• Worry and headache are over quicker
• You can move on with your life quicker
• Credit profile is better after bankruptcy—you have no debt.

   Some of the cons of filing bankruptcy are as follows:

• On your credit report for 10 years
• Cannot file a Chapter 7 Bankruptcy again for 8 years

Now, you say to yourself what does “on your credit report for 10 years” means when it comes to getting credit after bankruptcy? Great question. I always ask the question in reverse. Can you get credit before you file bankruptcy? Most people say no or they would likely pay higher interest rates if they did get the credit. You see, after bankruptcy, your debt is gone. Future lenders don’t give two rats butts about whether you pay other creditors. What future lender really care about is are you going to pay us?

Future lenders are not some virtuous group who want to see other creditors get paid. They could care less. What they want to know is are you going to repay us. That is what any lender really wants to know. Not necessarily what you do with other creditors but will you repay us. As you can see from the above, the benefits of filing bankruptcy outweigh the negatives.

Call today to speak with a bankruptcy lawyer from Kain & Scott 

When the time is right, or when you are ready, reach out to Minnesota best bankruptcy law firm at www.kainscott.com. You will be so happy you did!