Bankruptcy Good or Bad…

Bankruptcy has in most cases been labelled bad by a lot of people. It indicates that a person is experiencing 

problems with their financial problems, but it is a way to provide relief and an opportunity for a fresh start for 

those who cannot afford to pay off the debts owed.  Filing for bankruptcy in order to defraud the system is poor 

behavior. But there are those that file for bankruptcy due to genuine reasons such as the breadwinner being laid off.

The Pros of Filing for Bankruptcy

Even though a bankruptcy stays on a debtor’s credit record for some years, the time for completing the process 

right from the filing of the case takes only three to six months the debtor will have freedom from most of their debt. 

A decision against Chapter 7 when it is the right one, may hurt one’s credibility more than a bankruptcy case and 

might be more complicated to explain in future to any willing creditor.

The state exemptions allow the debtor to keep most of their property, sometimes providing a way to keep all of their 

assets. The debtor’s retirement benefits are fully exempted also and any earnings after filing for the Chapter 7 

bankruptcy are retained.The debtor will be able to obtain new credit cards after one to three years of filing for bankruptcy. 

Although the credit cards come at a higher interest rate, the debtor will be able to start over and furthermore most lenders will 

be willing to offer them credit cards due to their debt-free status.

Bankruptcy prevents the debtor from aggressive collection action by the creditors and allows them time to get their finances in 

order and pay off their debts such as student loans.

The Cons of Filing for Bankruptcy

Bankruptcy ruins one’s credit record since it remains the record for 10 years for those filing under Chapter 7 and for 7 years for 

those filing under Chapter 13. Property not exempted by either federal or state law will be lost in the case from sale by the court-appointed 

trustee. The debtor might therefore lose some of luxurious possessions or property of sentimental value.

Those debtors that have filed for bankruptcy experience difficulty when applying for a mortgage as their credit record will be a 

detriment to their credit-worthiness as a borrower. The debtors are viewed as a bad risk who can default on their payments.

A person cannot file for bankruptcy under Chapter 7 or Chapter 13 within six years of going through a bankruptcy proceeding. 

This might work against them in future in the case where they need to file for bankruptcy within that time period due to financial 

difficulties.

Deciding whether bankruptcy is good or bad

To decide whether to file for bankruptcy or not, one has to go through the following things:

1. Learn the kinds of bankruptcy and their effects and benefits

2. Consider all the available bankruptcy alternatives for their case

3. Consider how their personal life will be after filing for bankruptcy

4. Ensure they are eligible for bankruptcy

Bankruptcy cannot be labelled bad or good. It is a protection for those unable to pay off their debts from harassment and provides a fresh start in 

terms of management of their finances.

About Massachusetts Bankruptcy Center

Attorney Richard S. Ravosa is one of the best Worcester Bankruptcy Attorney of legal services in Massachusetts.

Attorney Richard S. Ravosa regularly meets with clients in their homes due to illnesses, age, or disabilities; he also oversees a staff of attorneys 

and paralegals who are dedicated problem solvers. Attorney Ravosa has a team of talented individuals who work together to make sure that your 

case goes smoothly from start to end. Attorney Ravosa and his staff guide our clients every step of the way.

Our experienced Massachusetts Lawyers handle cases that other lawyers refrain from taking due to complications, Attorney Ravosa handles 

cases which other Attorneys who are not experienced Bankruptcy Attorneys mismanage, incorrectly file or who file petitions riddled with errors, 

we handle simple cases from clients who are looking for an attorney who is respected by Bankruptcy Attorneys, Professionals and Trustees. 

Attorney Ravosa has an outstanding reputation in handling Bankruptcy Cases.