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If you think personal bankruptcy maybe be the answer to your problems, we recommend that you, before filing for Detroit bankruptcy, acquire as much information as possible about your options and the bankruptcy process itself. A good way to do this is by contacting a Detroit bankruptcy attorney and arranging for a free initial consultation. The article outlined below is provided by our Detroit bankruptcy attorney. |
Pros and cons of filing for Detroit bankruptcy
You are getting calls from collection agents. Your life is getting more stressful because of your debts. Is Detroit bankruptcy (either under Chapter 7 or Chapter 13) the answer?
Many residents of Detroit, Michigan have asked these same questions, so we have assembled, for your information, a list of the common “pros” and “cons” to declaring personal bankruptcy
Con: I will lose all of my credit cards.
Pro: Yes, you will surrender all of your credit cards while you are bankrupt. However, owing too much money on those credit cards may be the cause of some of your problems, so losing your credit cards is probably a necessary step for you to get a fresh start. If you pay cash, you never have to worry about high interest charges again.
Con: Declaring personal bankruptcy is an admission of defeat.
Pro: Recognizing you have a debt problem is the first step to help you get back on track. It is better to face your financial problems now, rather than waiting until your problems get worse, and cause even more stress, and start to affect your job, your health and your relationships. Each year thousands of people file for Detroit bankruptcy, and get the fresh start they deserve.
Con: Personal bankruptcy is embarrassing.
Pro: Getting collection calls at home and at work is even more embarrassing than bankruptcy. Having a home or car repossessed, or being threatened with a lawsuit or wage garnishment is even more embarrassing, and worse, can cost you a lot of money.
Con: Bankruptcy will make it harder to borrow money in the future.
Pro: It is true that there will be a note on your credit report indicating that you filed for bankruptcy. However, if you are behind on your bills now, it is probably already difficult for you to borrow.
Also, once your debts are eliminated after filing for Detroit bankruptcy, you will be able to start saving money, and with a suitable security deposit or down payment you will be able to borrow again.
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