There is nothing that is more disturbing than knowing that you owe more debt than you can manage to repay. Most people who are in this situation make the mistake of rushing towards the first way they see out of the problem. Most of the times, filing for bankruptcy is seen as an easy way out of the debt trap. While successfully filing for bankruptcy will protect you from creditors and buy you the time you need to get your finances in order, there are other repercussions of the process. Hiring Bankruptcy Lawyers in Port Orchard WA is one way to make sure that you know everything about bankruptcy, both good and bad before you settle for it.
The pros of filing for bankruptcy
- When you successfully file for bankruptcy, an automatic stay is placed on all personal assets. This makes it impossible for your creditors to legally collect their debt from you by auctioning off your property.
- After a successful bankruptcy filing, you will get a trustee who will be a bridge between you and the people you owe. The trustee will help you in the process of selling off your disposable assets and distributing the proceeds to repay your debts.
- When you file for bankruptcy, you must attend compulsory credit counseling. These are the sessions where you get to learn about the mistakes that you are making in the management of your finances. It is a great place to start rebuilding better financial management skills.
- Some bankruptcy provisions such as a chapter 13 have an added advantage of stopping an imminent foreclosure. It is also possible to get some of your debt canceled through what is known as lien stripping.
As you can see, there is a lot you can gain from filing successfully. However, you also need to think about the cons. These include issues such as ruining your credit scores, becoming a less financially reliable business partner.
In the end, you need to realize that without the guidance of competent Bankruptcy Lawyers in Port Orchard WA, you may end up making mistakes that will complicate your financial future.
