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Photo of attorneys Shelley Slafkes and Bruce Levitt
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What Are the Pros and Cons of Declaring Bankruptcy?

On Behalf of | Sep 12, 2013 | Bankruptcy Basics, Chapter 7 Bankruptcy

If you are considering filing a Chapter 7 or Chapter 13 bankruptcy, it is important to understand the advantages and disadvantages. Every case is unique, so it is important to discuss your individual circumstances with a skilled bankruptcy lawyer. Below is a summary of the pros and cons of a bankruptcy filing: Pros of bankruptcy. As soon as you file your bankruptcy petition, the automatic stay immediately goes into effect and prohibits collection efforts against you. In other words, all of the harassing telephone calls stop, lawsuits come to a halt and you have a forum in which to comprehensively deal with all of your creditors at once. Additionally, many of your debts are discharged or eliminated in bankruptcy. This means that when your case successfully concludes, you are no longer liable to pay the discharged debts. This can save your thousands of dollars! Cons of bankruptcy. The primary downside to filing a bankruptcy case is the negative impact it has on your credit score. For most people, however, their credit score is already low due to past due payments and collection lawsuits. Thus, the significant benefits of filing a Chapter 7 or Chapter 13 greatly outweigh any negative impact. The legal team at Levitt & Slafkes walks you through the bankruptcy process step by step. We ensure that you are fully prepared for how your filing impacts you now and in the future. If you are interested in learning more about Chapter 7 or Chapter 13 bankruptcy cases, contact Levitt & Slafkes, P.C. We are experienced in handling a variety of bankruptcy issues. Our offices are conveniently located in South Orange, New Jersey. Please call us at 973-323-2953 or online to schedule your free initial consultation today.