Pros of Business Bankruptcy
- You may not legally have to repay most or all of your debts.
- Could stop foreclosure of your home and give you the opportunity to catch the missed payments up.
- Could prevent repossession of your car or other property, depending on the type of Bankruptcy filed.
- Will stop wage garnishments, debt collector phone calls, etc. to collect a debt.
- Prevent shutoff or will reinstate utility service.
- Lets your finally meet and challenge those creditors in court who you feel have committed fraud or are trying to collect more than the true amount.
Cons of Business Bankruptcy
- Will not let you keep collateral owed to a creditor listed in your Bankruptcy unless you keep up with the payments on that collateral.
- You cannot usually bankrupt child support, student loans, alimony, court restitution orders, certain types of taxes, or criminal fines. There are some very narrow exceptions to some of these.
- Will put your cosigners on listed debts at risk. They are still liable for all or part of any debt you legally discharge through a bankruptcy.
Will not eliminate your mortgage or any other collateralized loan, will only stall them and give you relief from other creditor payments so that you may catch up with the collateralized loans or house payment.