The decision to file bankruptcy is a big one. It is something you definitely should take the time to get informed about before you make a move. If you’re thinking about filing a petition for bankruptcy in Indianapolis, IN, check out the following pros and cons that may help you make a wise decision.
The Possible Disadvantages
The biggest disadvantage of filing bankruptcy is that your credit will be negatively impacted. You may lose some of your current lines of credit, and you could have trouble obtaining credit or loans in the near future since your bankruptcy will stay on your credit report for a number of years.
Furthermore, you could lose some of your possessions in a bankruptcy case. Non-essential items that are not yet fully paid for (such as expensive jewellery or a stereo system) could be seized during your case. Your creditors will do whatever they can to recover the money you owed, even if it means repossessing your items.
Finally, bankruptcy may affect your business if you own an LLC. If you’re an entrepreneur who wants to file bankruptcy for personal debts, make sure that you speak with an attorney about how to avoid having your business seized when you file your petition.
The Advantages You Can Receive
The first advantage that you’ll notice once you file bankruptcy is that your creditors will stop harassing you through the mail as well as by phone. This is because you will be granted an automatic stay, which means that all collection efforts should cease so that you can begin the bankruptcy proceedings.
Also, you’ll get a chance to start over financially. This time around, you will be able to build your financial portfolio from the ground up, purchasing only what you can truly afford and avoiding the trappings of making poor credit decisions.
In the long run, you will also have the advantage of getting a thorough financial education. Your lawyer will likely advise you to obtain a copy of your credit report as well as apply for a secured credit card. As you make payments on time, you’ll be able to see how every move you make affects your credit score.
Filing Bankruptcy in Indianapolis, IN may be a scary idea to some people, but it does have its benefits. Visit us website to find out how to speak with a skilled attorney about the bankruptcy options that may be available to you.
