The advantages of filing bankruptcy: You have probably heard a great deal about the pitfalls of filing for bankruptcy. Depending upon the source of your information, you may have heard that bankruptcy permanently damages your credit score and ruins your chances of finding a decent job. Further, you may have heard that your bankruptcy can will show up on any future background checks by landlords and creditors.https://utahbankruptcyguy.com/utah-bankruptcy/
Some of these rumors have basis in fact others are overly exaggerated. Yes it is true that declaring bankruptcy can hurt your credit score for a period of time. It’s also true that a bankruptcy declaration is a matter of public record. However, critics of the bankruptcy process tend to overemphasize these negative points. If you’re struggling to repay your bills, none of your debt-fighting options are going to be easy or free from stress. It is true that there are a number of methods of debt relief that might help improve your financial situation over time, it important to always remember there’s no magic switch that you can flip to rebuild your credit.
Despite some of its disadvantages, in many cases, filing for bankruptcy is the best course of action.
The advantages of filing bankruptcy are:
-Filing for bankruptcy will trigger the “automatic stay”, this part of the law preventing creditors from taking action to collect their debts, repossessing property such as cars.. This also can stop many evictions, foreclosures, wage garnishments and utility shutoffs.
-You may be able to discharge your obligation to repay most of your debts.
-By using the bankruptcy exemptions, many debtors can go through the bankruptcy process without losing any of their property.
-A bankruptcy filing will remain on your record for 7-10 years, however since many debts can be discharged in bankruptcy, many people begin improving their credit score right after filing bankruptcy.
So if you look at bankruptcy in this light it has some attractive qualities. It can be useful to reduce or eliminating certain forms of debt. Although you will not be able to get rid of your mortgage or auto-loan obligations by declaring bankruptcy you may be able to reduce a number of other debts like credit cards, check loans and personal loans. This elimination of troublesome debt can free up substantial income and help ensure that you remain current on your other debts like your house payment.
Call us to set up a free consultation at our Orem Utah office: 801-221-9911. The Law Office of Douglas Barrett, LLC. The Utah Bankruptcy Guy.