re you considering filing for bankruptcy? Below are some of the pros and cons of doing so, some of which may surprise you when you consider Long Island bankruptcy.
Pro: If filing Chapter 7 bankruptcy, the whole process takes just three to sixth months.
Con: A Chapter 7 bankruptcy can remain on your credit files for up to 10 years.
Pro: If filing Chapter 7, creditors may not legally contact you at all about your debt during the bankruptcy process. Any garnishments or repossessions against you are stopped.
Con: Once the bankruptcy is over, you’ll have to give the court all of your credit cards. You also may have to give up some of your “luxury” items (cars, boats, furs, jewels, etc.) for liquidation.
Pro: In addition, even though you’ll have to liquidate some of your possessions to help pay your creditors, many of your personal possessions are exempt from this.
Con: Filing bankruptcy doesn’t erase all of your debt. You can’t file bankruptcy to get out of paying student loans, for example. Neither can you get out of paying alimony and/or child support by filing bankruptcy.
Pro: Filing bankruptcy can give you a great chance to start with the proverbial “clean slate” financially.
Con: If poor money management was what got you to bankruptcy, you can’t use bankruptcy to solve your problems again for several years. In other words, you can’t rely on bankruptcy to help you “take care of your debts.” You cannot file Chapter 7 bankruptcy again for seven years, for example.
Pro: Filing bankruptcy allows you to rebuild your credit rating.
Con: Filing bankruptcy also places a big “hit” on that credit rating. It will take you years to build it up.
Choosing to file with a Long Island bankruptcy court should never be taken lightly. The benefits as well as the detriments of such a decision should be considered carefully.
Such a decision should, frankly, be considered with the help of a good bankruptcy attorney. This professional will be able to go over your unique situation and come up with a plan that fits your circumstances to a tee.
Blutter & Blutter Attorneys at Law is just such a law firm. We have more than 40 years of combined experience helping Long Island residents make their way through the bankruptcy process.
We know this is an extremely stressful time for you and we hope you’ll contact us today for your free consultation so that we may give you the experienced attention you deserve. We look forward to hearing from you!