What are the advantages to a Bankruptcy?
The advantages to a Bankruptcy are twofold. The first and most obvious advantage is that a debtor has the opportunity to eliminate all unsecured debt they would ordinarily be responsible for paying. To achieve this, the debtor is only responsible for paying attorney fees and court fees. These costs are small and create an extremely powerful reason to declare a bankruptcy when compared to debt consolidation or debt negotiation options. The second advantage to declaring a bankruptcy is that a debtors’ credit will actually improve over time. This is due to the fact that a bankruptcy will eliminate debt and increase the capacity of a debtor to borrow, thus raising the credit score of the debtor. If you look at it another way, the elimination of debt through the Bankruptcy eliminates the monthly debt payments by the debtor. The elimination of these debt payments increases the discretionary income of a debtor. By having more discretionary income, and no dent to pay back, the creditor will vi
