Facing large amounts of debt can be a terrifying experience, leading to worries about being evicted or losing one’s home, having assets seized or wages garnished, or even facing litigation as a result of outstanding debt. At the law offices of Deborah Gold-Alexander Attorney at Law, we understand how stressful living with large amounts of debt is, and we want to help. If you have been thinking about filing for bankruptcy in our state, it’s important that you understand the pros and cons of filing for bankruptcy in Massachusetts. Consider the following information, and call our lawyer for more details that are specific to your case–
The Pros of Filing for Bankruptcy in Massachusetts
Filing for bankruptcy will have multiple benefits, some of which are immediate. The pros of filing for bankruptcy include:
- Initiating the automatic stay. One thing that can provide huge relief for debtors is that filing for bankruptcy triggers the automatic stay: a stay on all creditors and collectors that prevents them from proceeding with any debt collection efforts. This means that while your bankruptcy case is pending–beginning from the moment that you file your petition for bankruptcy–creditors cannot call you, send you mail, or otherwise contact you to collect on a debt.
- Taking steps towards repayment. Depending upon the type of bankruptcy that you file, filing for bankruptcy can be the first step in taking charge of your financial situation and making gains towards repayment. For example, if you file for Chapter 13 bankruptcy, you will enter into a repayment plan with your creditors.
- Eliminating debts. Some types of debt will be discharged in a bankruptcy filing, which can be a huge relief. Knowing that your debt will be eliminated can bring much peace of mind.
The Cons of Filing for Bankruptcy in Massachusetts
Filing for bankruptcy isn’t without consequences. If you file for bankruptcy, you may have your debts cleared, but you’ll also have to deal with–
- A hit to your credit. When you file for bankruptcy, your credit score will drop significantly. A bankruptcy filing will remain on your credit for seven to 10 years after you file. However, the Attorney can discuss ways to re-establish your credit after a bankruptcy filing.
- Public information. A bankruptcy filing is public, which means that anyone could look up the details of your bankruptcy case.
- Potential future lending problems. Most lenders are very hesitant to lend to someone who has filed for bankruptcy, especially if the bankruptcy is recent. You’ll need to work hard to rebuild your credit and gain the trust of creditors. The Attorney has represented many debtors who are able to later rebuild their credit and buy a home and qualify for a mortgage with adequate income. However, there may be some look back or waiting periods after a bankruptcy filing before a debtor may qualify for a mortgage depending upon the lender and its requirements.
Call Deborah Gold-Alexander Attorney at Law Today
Filing for bankruptcy isn’t something that you want to do alone because of technicalities. To learn more about the types of bankruptcy, the pros and cons of bankruptcy, and whether or not you qualify for a bankruptcy filing, call Deborah Gold-Alexander Attorney at Law directly today. Deborah Gold-Alexander has over 30 years’ experience assisting clients in Massachusetts.