The Pros and Cons of Bankruptcy

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The Pros and Cons of Bankruptcy

Making the decision of whether to file for bankruptcy or not is huge. It can change your life for the better in the case of those who are truly desperate. However, it does have some cons you will need to consider as well. Many people feel that filing for bankruptcy is the “death knell” of their finances, but that’s not true. Even though there will be some changes, at least for a time, it does not mean that it’s all bad news. It is important to consider the pros and the cons of bankruptcy, and to speak to an attorney about what to do while you are making your decision.


First, consider the cons. You will lose your credit cards unless you are able to pay them off before you file. It can make it almost impossible to get a mortgage for about five years after filing for bankruptcy, and it can be very difficult to get any type of loan or build credit during this time.


However, despite these cons, filing also has some pros that go along with it. Namely, it will stop collection actions by your creditors. You will not have to worry about garnishments, repos, or foreclosures. You will be able to exempt certain things, such as homes and vehicles, from the process so you can keep them.


If you are in financial trouble and you do not know what to do next, then bankruptcy might be the best decision for you. Still, make sure you go over all of your options and choose the one that’s truly right for your situation. Talk with experienced bankruptcy attorneys who can let you know what will happen during the process in San Diego, so you know exactly what you have to do and provide to them in order to start the bankruptcy.



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