What Are the Benefits of Bankruptcy?
Counsel from a Trusted Bankruptcy Lawyer
While bankruptcy has some negative consequences, it is often the best solution for those who are facing severe financial distress, whether from a job loss or loss of income due to illness, injury, the death of a family wage-earner, divorce, or other circumstances.
For many people, declaring bankruptcy is the only way to end an impossible situation, despite the adverse consequences of a lowered credit rating. So, are there any benefits? As a seasoned bankruptcy attorney, I have helped countless individuals through the bankruptcy process at my firm The Law Offices of Mark Little and can answer that question with a definite "yes."
Want to learn more on just how bankruptcy can benefit you? Contact me today for counsel you can trust.
The Benefits of Filing Bankruptcy
Filing for bankruptcy can help you get a fresh start in your finances.
The benefits of filing for bankruptcy include:
- Automatic stay begins
- Avoiding repossession
- Discharging of unsecured debts
- Preservation of assets
All these things can help relieve the burden of debt mentally, emotionally, and tangibly. Below we've outlined each of these benefits in more detail!
First of all, after filing for bankruptcy, the automatic stay that is imposed by the bankruptcy court will prohibit creditors from trying to collect from you. This means the end of harassing phone calls and letters from creditors and collections agencies. You will also be free from the stress and worry of trying to pay bills that you cannot pay. Your financial obligations will be turned over to a trustee who will take care of handling your creditors.
Additionally, filing for bankruptcy prevents property in your possession from being repossessed. It prevents your utilities from being cut off and stops or prevents wage garnishment. Moreover, if you are a homeowner, it stops the foreclosure process, allowing you time to catch up on your payments. The automatic stay also gives you time to dispute any false claims that may be part of your debt situation with creditors.
Discharge Unsecured Debts
Filing for bankruptcy discharges most, if not all, of your unsecured debt. You will no longer be under any obligation to creditors for these debts. The only debts you will still be liable for are family support obligations, student loans, certain types of taxes, and criminal penalties and fines, such as traffic tickets. That means that you are now debt-free and in a position to rebuild your financial status, with hopefully a lot more awareness of how to maintain financial stability.
Preservation of Assets
Bankruptcy exemptions allow individuals to protect certain types of property from being seized by creditors in the bankruptcy process. This can include personal belongings, retirement savings, and in some cases, a portion of home equity.
Over 40 Years of Experience by Your Side
If you are concerned about whether or not bankruptcy is the right decision for you, then I suggest you contact me to schedule a consultation. Every financial situation is unique. We will take the time to create a personalized strategy to get you out of debt.I would not tell you to file for bankruptcy if I didn't truly believe that it was the most viable option for you, and you can be rest assured that I can help you find the right solution once and for all.
If you are struggling with overwhelming debt, then I urge you to contact me at my office so we can start working on a solution that is tailored to your specific needs. I look forward to helping you find the legal solutions for debt relief that you need.
For legal help with any type of bankruptcy, please contact my firm to schedule a consultation.