BANKRUPTCY: GOOD OR BAD?
Bankruptcy holds many other benefits besides the automatic stay for people in deep financial trouble. The other obvious advantage is that your debts will be wiped out due to another court order called the discharge. The discharge and the automatic stay are the twin towers of bankruptcy.
**Before you declare bankruptcy, you may want to consider meeting with a financial counselor to see if they can help you regain control of your finances. It is also important to note that there are non-dischargeable debts.
Bankruptcy also gives peace of mind. Few things in life cause more marital strife and personal stress than money problems. Bankruptcy, with its chance to start new, get creditors of your back via the automatic stay, wipe out your debt and create disposable income, will help you to get along better with your mate and sleep better at night.
The effect on future credit.
Loss of property. In a few cases, a person may lose some of his property to the bankruptcy trustee. This happens only when the debtor files w/o the assistance of an attorney, has a bad attorney, or owes too much property.
You especially want to make sure that you will be able to protect your assets when you you file. Each state has different laws and limits regarding the amount of property a debtor can keep when he files bankruptcy.