risking your reputation because it would be known publicly especially if you have a running business. The individual can also lose his assets of value like his house, car, or even his business.

 

6. Declaring bankruptcy does not hold you accountable for your current debts anymore.

 

Do not expect continuous and harassing calls from your creditors any longer. You are making a fresh start here. Filing for bankruptcy aids in eliminating your debt or restructuring the payment of your debts. Courts will notify your creditors and harassment calls will stop in time.

 

7. Expect filing for bankruptcy to be good for your overall credit rating, eventually.

 

Before filing for bankruptcy, it would have taken you more than a few years to pay off all your loans; and it makes you think, so what, my credit is already negative anyway. But after filing bankruptcy, you can start rebuilding your savings account and eventually apply for new credit. But don't forget; learn from your mistakes of the past. In the future, use all credit cards responsibly.

 

8. Now that you have filed for bankruptcy, expect to pay less.

 

After filing for a bankcrupty, you now possess more bargaining power against your creditors. Now that they are aware of your situation, they can no longer harass you and force you into paying large amounts of money for your debts. You can bargain for payments within your range of comfort for the reestablishment of your credit. Creditors are forced to acknowledge that you have less money than what you owe now.

 

9. Once discharged, expect most of your debts to get wiped off your record.

 

This is one good thing about filing for bankruptcy. Creditors cannot pursue debts that have already been removed from your record. Time and again, harassing phone calls will cease and this eradictes the insecurity and stress brought about by dealing with these creditors.

 

10. Expect the prevention of utility services disconnection.

 

While you’re in bankruptcy proceedings, the utility service should not be changed, refused, or cut off just because you have not settled your bills in your filing. Within 20 days after filing your case, talk to your utility company into securing a deposit or other forms of security to guarantee that you will pay future utility bills. Bankruptcy will most likely result in discharge of your past-due debts to utility companies so it would be illegal to discriminate against you if discharge pushed through.

 

While bankruptcy may give the impression of being the easier way out than paying your debts outright, there are a lot of negative consequences to take into consideration. However, there are also good things to thank bankruptcy for. It can give you new hope in redeeming your financial status if used wisely.

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