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The Pros and Cons of Bankruptcy
January 17th, 2010 by admin
Being bankrupt may have a very negative connotation, but it also has its advantages. Let’s start with the bad news first. You may lose all assets of value including your home. If you own a business, the trustee will sell the business and lay off all employees. Certain debts cannot be written off such as fines, child support payments, debts incurred through fraud or to secured creditors.
Now, let’s go to the good news. Filing for personal bankruptcy frees you of the stress of dealing with creditors. A trustee is assigned to take possession of your assets and manage payment procedures. Creditors are forced to accept less money than what is owed and sometimes take minimum interest in the debts after bankruptcy is filed. Most debts are written off and creditors don’t run after the debtor anymore.