Bankruptcy has advantages, but it also has drawbacks. If you’re looking for a way to resolve financial challenges or pay off a mountain of debt, you should consider your options carefully. There are a number of non-bankruptcy alternatives that you can research, such as debt negotiation and payment plans. If you choose to file, you need to make sure that you fully understand the implications as well as what bankruptcy can and can’t do.
Things to Consider
Declaring bankruptcy is a last resort. It can give you a fresh start over time, but it’s not a quick fix. It can have a number of benefits depending on your financial situation. Filing for bankruptcy means that you’re taking charge of your finances and being honest with yourself. It doesn’t mean that you are a failure. Here are a few of the possible advantages and positive changes that you may experience.
- You get a second chance, a fresh financial start and the opportunity to rebuild your credit. When debt isn’t controlling your life, it’s easier to manage your money, to stick to a budget and to start saving.
- Bankruptcy can help you get out of debt. Depending on how you file, bankruptcy can wipe out most of your debt or reduce the amount that you owe. Under Chapter 7, medical bills, credit card balances, car loans and unsecured debts are discharged. Chapter 13 bankruptcy reduces your debt and payments to a manageable amount.
- You will avoid collection calls and lawsuits. When you file for bankruptcy, you are protected by an automatic stay. Collection calls will stop, and creditors cannot sue you. The stay can prevent wage garnishment, utility disconnections and other issues.
- You may keep your house and your equity. Personal bankruptcy lets you take advantage of Oklahoma’s generous homestead exemption that protects your full equity. With Chapter 13 bankruptcy, you have a chance to stop foreclosure and make catch-up payments gradually. You equity is also protected under Chapter 7 bankruptcy.
If you have questions about the process or would like personal advice, call Gary Hammond of Mitchell & Hammond at 405-216-0007. I handle all bankruptcy cases personally and will review your finances to see which route would be best for your situation. I am here to help you through the process and to make sure that you can recover fully. The initial consultation is free.
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