• Skip to content
  • Skip to footer
  • Areas of Practice
    • Estate Planning
      • Complete Guide
      • Digital Assets Management
      • Revocable Living Trusts
      • Trusts vs Wills
      • Trust General
      • Wills
      • Probate
    • Business
      • A Guide to Business Formation
      • Corporation
      • Limited Liability Companies
      • Real Estate
    • Civil Disputes
      • Alternative Dispute Resolution
      • Arbitration
      • Mediation
      • Eviction
      • Insurance
      • Personal Injury
      • Wrongful Death
    • Debtor/Creditor
      • Oregon Bankruptcy Dashboard
      • Filing Bankruptcy in Oregon Chapter 7 | Chapter 13
      • Collection
      • Foreclosure
  • Attorneys
  • Staff
  • Reviews
  • Contact
  • Pay Now

McCord & Hemphill | Bend Attorneys | Bankruptcy | Estate Law

Bankruptcy Pros and Cons

Advantages of Bankruptcy

Filing bankruptcy gives you immediate relief from your debts and your creditors.   Once you have filed your bankruptcy Petition with the Bankruptcy Court, you are protected by the “Automatic Stay.”  The Automatic Stay is a bankruptcy-related restraining order that prohibits your creditors from collecting on most types of debts.  Most creditors cannot start or continue lawsuits, foreclose on or repossess your assets, garnish your wages or financial accounts, or even make telephone calls to you.  Your creditors are notified of the bankruptcy filing by the court clerk.

By filing bankruptcy, you can:

  • Stop Collections Calls and Letters from Creditors
  • Block Garnishment of your Wages or Bank Accounts
  • Block Lawsuits
  • Stop Eviction
  • Stop Foreclosure
  • Stop Repossessions
  • Most Importantly:  Give You Back Your Peace Of Mind

Filing bankruptcy enables you to “discharge” (wipe out) many of your debts.  A successful bankruptcy will:

  • Eliminate Your Credit Card Debt and Personal Loans
  • Eliminate Your Medical Bills
  • Eliminate Money Judgments against you
  • Eliminate Deficiency Balances after Repossession or Foreclosure

Depending on your circumstances and they type of bankruptcy you use, you may also be able to:

  • Eliminate or pay down tax-related debts
  • Reinstate your driver’s license, if it was suspended due to non-payment of traffic fines
  • Get caught up on your mortgages or auto loans

Disadvantages of Bankruptcy

Bankruptcy is not all positive.  It will have some negative effects.  For example, filing for bankruptcy will cause considerable damage to your credit rating, which will impact your ability to obtain credit or financing during and after the bankruptcy.  A bankruptcy filing may remain on your credit for up to ten years.

Depending on the type of bankruptcy you file, there may be other potential disadvantages.  For example, in the Chapter 7 bankruptcy, you risk the Bankruptcy Court liquidating some of your assets.  In the reorganization bankruptcies (Chapters 11, 12 and 13), you have to make regular payments as part of a bankruptcy payment plan, which could last for up to five years.

Footer

Get in Touch


    Make Payment
     

    This website presents general information about McCord & Hemphill LLC and is not intended as legal advice nor should you consider it as such. You should not act upon this information without seeking professional counsel. Please keep in mind that merely contacting McCord & Hemphill LLC will not establish an attorney-client relationship. McCord & Hemphill LLC cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement. Accordingly, please do not send McCord & Hemphill LLC any information or documents until a formal attorney-client relationship has been established through a consultation with an attorney and you get authorization in the form of a fee agreement or engagement letter from McCord & Hemphill LLC. Any information or documents sent prior to your receipt of a fee agreement or engagement letter cannot be treated as confidences, secrets or protected information of any nature.

    © 2023 · McCord & Hemphill, LLC · Assembled by Webformix