Pros and Cons of Going Bankrupt

This “B” word when mentioned always brings a negative aura, making everyone uneasy to even talk about it. Then people would think, “what a shame, they went bankrupt” or “I don’t ever want to go bankrupt.”

A misconception is formed referring to bankruptcy as only about losing all your properties, assets and money -- or literally losing everything. Maybe it’s time to break such belief because bankruptcy is not all negative and damaging; there is still something good and pleasing about it.

To help you realize the fact, you first have to know everything you needed to know. And to know the true nature of bankruptcy, here is a list of the advantages and disadvantages of going bankrupt before, during and after the proceedings:

Advantages of bankruptcy

Losing is gaining. When you undergo bankruptcy, you may suffer a loss, but what you’ll gain is really not bad. Once the proceeding is officially over, it’s also the best chance for you to start a new and better financial life.


When you file for bankruptcy, you can sleep at night peacefully because you don’t have to deal with your creditors anymore. This is due to the automatic stay issued by the court which stops your creditors from collecting debts, contacting and filing a lawsuit against you.


You still have the right to keep some of your properties through bankruptcy exemptions -- there may be certain furniture or utensils that hold a special place in your heart.


Lifting up your obligation to pay dischargeable debts is possible.


You can still improve your credit rating after filing because many debts can be discharged through bankruptcy.

Disadvantages of bankruptcy

Your bankruptcy case can last in your credit record for seven to ten years, so it’s better to know both the advantages and disadvantages of bankruptcy to weigh down your choice properly.


You may not exercise your right to keep some of your properties if you’re unable to exempt them under the bankruptcy exemptions. If this happens, the court will have the authority to sell your home, car and the likes, seize your savings if you are already of legal age.


A bankruptcy record can ruin your career because some employers might find it unappealing. And if you have a business, it will be shut down and sold as well.


You may be deprived to obtain a mortgage, loan, and housing.


You may be denied claim any tax refund from federal, state or local governments.


You’ll be required to pay your debts for three years if proven that you’re able to do so according to your income.


A bankruptcy record can negatively affect your immigration status.


Your bankruptcy will be made known to the public by publishing it, yet can be prevented depending on some circumstances.


Your credit cards will automatically be cancelled by concerned entities.

Deciding whether to file or not for bankruptcy lawyer Fredericksburg VA can be troubling and sometimes even reading some tips and guide can be confusing. What you must do to avoid stressing out is to hire a bankruptcy lawyer because they can help you analyze your case and will give professional advice if bankruptcy is really is the best option.

Looking for the most trusted bankruptcy lawyer Fredericksburg VA? Visit Conway Law Group - Fredericksburg VA at 1320 Central Park Blvd Suite 250, Fredericksburg, VA 22401, USA or you may contact 855-848-3011.