If you are facing debt that has spiraled out of control, bankruptcy may be the solution. As ominous as it sounds, bankruptcy is meant to be a fresh start, giving you a chance to get out from under the tremendous stress and rebuild your financial health. Contrary to popular belief, bankruptcy does not mean losing all of your property. In fact, you may be able to keep all of your property. There are some downsides to bankruptcy and it is not the right solution for everyone or every situation. Attorney Phillip J. Milligan is here to explain the details and what you can expect and help you decide if bankruptcy is the best path for you.
Benefits of Bankruptcy
Bankruptcy gives you a chance to stop digging a deeper hole and start rebuilding your credit. Depending on the type of bankruptcy you choose, you may be able to discharge most of your debt or set up a realistic repayment plan. And, you can do it without losing everything you own. Bankruptcy can give you peace of mind by:
- Preventing shutoff of your utilities
- Preventing lawsuits against you by creditors
- Immediately stopping and preventing wage garnishment
- Ending phone calls from debt collectors
- Putting an automatic stay on foreclosure proceedings
- Protecting your home, vehicle and personal property
Downsides of Bankruptcy
For many considering bankruptcy, one of the most distressing aspects is having it on their credit report. Chapter 7 bankruptcy stays on your credit report for 10 years. Chapter 13 is deleted after seven years. This may prevent your from getting loans and can cause other problems for you. However, you can start rebuilding your credit score before your bankruptcy drops off, and bankruptcy can stop the damage being done to your credit by the financial problems you are currently experiencing, allowing you to rebuild your credit faster than you could without bankruptcy.
Bankruptcy does not discharge all types of debts. Examples of the types of debts that cannot be discharged by bankruptcy include:
- Child support
- Criminal fines
- Student loans
- Certain taxes
Although these debts cannot be discharged, bankruptcy may stop actions against you and give you the chance to establish a realistic payment plan.
Bankruptcy will not solve all of your problems and restore your financial health overnight, but it does help you see the light at the end of the tunnel.
If you are considering bankruptcy in Arkansas, please call Milligan Law Offices at 479-783-2213 or contact us online today to schedule your confidential consultation and find out if bankruptcy is a good solution for you.