What Are Some Advantages And Disadvantages Of Filing For Bankruptcy?

Filing for bankruptcy is not a thing for everyone. It comes up with both positive and negative outcomes. If you are looking forward to filing for bankruptcy, then it is crucial to be familiar with all the aspects, be it positive or negative. Mentioned below are a few common advantages and disadvantages of filing for bankruptcy, have a look below to read ahead.

Advantages Of Filing For Bankruptcy

You can have a bankruptcy discharge - some of your debts can automatically get discharged while filing for Worcester Bankruptcy. You can get a discharge on certain unsecured debts, such as - medical bills, credit card loans, personal loans, etc.

You can get a fresh start - This state can entirely shake your financial stability, but filling for bankruptcy allows you to regain your financial freedom and give a fresh start to your financial life by eliminating the repayment stress from your life.

Prevents you from the harassing actions of creditors - bearing the annoying and harassing calls and actions of the creditors is what makes this phase dreadful. Filing for bankruptcy temporarily prevents you from all these annoying actions performed by the debt collectors.

Disadvantages Of Filing For Bankruptcy

Renting a flat becomes hard - if you are planning to rent a house then house owners may not prefer to deal with you if you have filed for bankruptcy. But this is the case when it’s been less than 2 years since you filed.

You will get rid of the dischargeable debts - you still are legally responsible for undischarged debts.

Your credit score will be impacted - irrespective of any chapter of bankruptcy you file, it will impact your credit score for around seven to ten years.