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The Benefits of Filing for Bankruptcy

benefits of filing for bankruptcyIf you are facing financial hardships and feel like your debts have become too difficult to manage, attorney Ted Troutman can explain the benefits of filing for bankruptcy, including a discharge of debts, retention of essential possessions, and general peace of mind. During a consultation at his Beaverton or Portland, OR, offices, he can help determine if filing for bankruptcy is right for you.

One of the greatest benefits of filing for bankruptcy is that as soon as you file, creditors must cease all phone calls and other forms of contact.

What Can Bankruptcy Do for You?

Although bankruptcy can have negative connotations, it can actually offer many benefits:

  1. Creditors must cease contact. One of the greatest benefits of filing for bankruptcy is that as soon as you file, creditors must cease all phone calls and other forms of contact. This can relieve the anxiety and embarrassment many experience as a result of this harassment. 

  2. You can retain your essential possessions. Filing for bankruptcy can prevent creditors from repossessing your home, cars, and other essential possessions. While certain possessions may be liquidated to pay off your debts, the court will not leave you without a home or vehicle. 
  3. Discharge of debts. Filing for bankruptcy can discharge a majority of unsecured debts. These debts may include medical bills, credit cards, and vehicle loans. 
  4. You can keep your bankruptcy private. Although court records are technically made public, no one has to know about your bankruptcy unless you choose to share that information with them. Family, friends, and coworkers never have to know about your bankruptcy. The only time you would need to disclose your bankruptcy is if you apply for a new loan or credit card. 
  5. A fresh start and peace of mind. Excessively large amounts of debt can cause immense stress. Harassment from creditors can lead to feelings of overwhelming anxiety. By discharging your debts, you can achieve a fresh start. Once you have a clean slate, you can begin rebuilding your credit. 

If you have additional questions regarding the benefits of filing for bankruptcy, Mr. Troutman would be happy to assist you during a private consultation.

Are There Any Disadvantages to Bankruptcy?

There are some disadvantages to filing for bankruptcy. First, bankruptcy stays on your credit history for 10 years after you file. However, you can begin rebuilding your credit during this time. Additionally, not all debts are dischargeable. Student loans and most tax debts cannot be discharged. However, filing for bankruptcy can help you create a payment plan that makes repaying these debts more feasible. Bankruptcy may make it more difficult to secure a mortgage in the future if you do not already own a home. However, there are certain lenders who are more willing to lend to those who have filed for bankruptcy in the past.

Learn More about the Benefits of Filing for Bankruptcy

For many clients, the benefits of filing for bankruptcy make it a prudent choice. The best way to determine if bankruptcy is the right choice for you is to schedule a consultation with Mr. Troutman. He can review your situation and determine whether filing Chapter 7 or Chapter 13 bankruptcy is more beneficial to you. Call our Portland office directly at (503) 597-1651 or our Beaverton office at (503) 292-6788.

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We have 2 locations in the greater Portland area.

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Portland Office

1001 SW 5th Ave
Ste 1100
Portland, OR 97204

More Info Directions (503) 597-1651

Beaverton Office

5075 SW Griffith Dr
Ste 220
Beaverton, OR 97005

More Info Directions (503) 292-6788