“Should I file bankruptcy?” This is a question that many people ask themselves when they find themselves struggling financially. Whenever you are making a difficult decision, it can help to make a pros and cons list. Read on to learn more about the pros and cons of filing for bankruptcy in New York.
What are the Pros of Filing for Bankruptcy?
For many, “bankruptcy” is a scary word. It may be hard to believe, but there are several benefits to filing for bankruptcy. The most notable being the automatic stay. This means that when you file for bankruptcy, an automatic stay is immediately imposed on all your creditors, which allows you to keep your home while preventing creditors from pursuing all collection activities. This is not the only benefit of filing for bankruptcy. Some other pros include:
- You may discharge your obligation to repay any of your dischargeable debts
- Many debtors will begin improving their credit rating after you file
- You may go through the bankruptcy process without losing any of your property–in some cases, you may keep your car, your home, any pensions, IRA’s and retirement accounts, up to $10,000 in value of household goods, life insurance policies, and more
What are the Cons of Filing for Bankruptcy?
While there are a number of pros when it comes to filing for bankruptcy, there are downsides as well. Some of the biggest cons of filing for bankruptcy include:
- Raised insurance premiums
- Bankruptcy will be noted on your credit report for 7-10 years
- You may find it difficult to get a new credit card or line of credit
- It may negatively impact your ability to get a job in the future
- Some landlords are leery of those who file for bankruptcy
Filing for bankruptcy can be a big decision. As a result, it is important to consult an experienced bankruptcy attorney. Contact our firm today to speak with a skilled and experienced attorney.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.