What are the Advantages of Filing Bankruptcy Over Alternatives?

When you are facing financial trouble, you have a couple of different options available to you including debt settlement, debt consolidation and bankruptcy. If you find yourself in this situation, you may wonder what are the advantages of filing bankruptcy over choosing one of these other options. The answer is, it depends on your situation, but there may be several reasons why bankruptcy could be the right choice for you. 

Advantages of Bankruptcy

Bankruptcy can be a good option because:

• When you file bankruptcy, an automatic stay is put into place. This means creditors have to stop trying to get money from you- immediately. Not only does this put an end to annoying phone calls from creditors, but it also means that foreclosure or repossession of a car can be stopped
• Bankruptcy essentially forces creditors to negotiate with you if you file a chapter 13. While you may try to get your creditors to make a deal with you through a debt settlement plan, there's no guarantee they'll be willing to negotiate. When you file a chapter 13, they can object to repayment plans or to the bankruptcy, but ultimately in most cases, they'll agree to a repayment plan that has you paying back less than the total you actually owe
• Bankruptcy can dissolve or discharge most debts, if you are eligible for chapter. Not everyone can file this type of bankruptcy, called total liquidation bankruptcy, but those who can are able to walk away with most of their debt gone (with the exception of student loan debt, unpaid child support and certain other debts that aren't dischargeable.) Of course, assets are taken as part of a chapter 7 bankruptcy, but if you don't have a lot of assets and if you debts far outweigh your assets, this can provide the best and easiest solution for you.

Getting Legal Help

Ultimately, whether bankruptcy is your best choice or whether a different option would be best, depends greatly on your personal situation. You should sit down with a bankruptcy lawyer as soon as you begin considering bankruptcy. Your lawyer can help you explore your eligibility for different chapters of bankruptcy and can help you to decide which of the options is right for you. Your lawyer can also take care of all of the myriad of paperwork that accompanies a bankruptcy filing so that your case can move through the courts without undue delay and you can have your debts dealt with and move on with your life.