Bankruptcy is a powerful option to help you regain secure financial footing. If you are facing expenses and bills you cannot pay, understanding what bankruptcy has to offer is important.
Consider these advantages of filing for bankruptcy:
- Immediate relief from collection attempts is a primary benefit of filing for any type of bankruptcy. Upon filing your petition, you are granted an automatic stay of actions against you including garnishments, collection calls, legal proceedings, utility shut off, foreclosure and other actions. While the automatic stay does not eliminate the underlying right of debtors to pursue their claim, it gives you breathing room to address problems and decide what to do without harassment or pending lawsuits.
- Different types of bankruptcy offer different methods for handling your debt. With few assets and high unsecured credit card debt, filing for Chapter 7 bankruptcy can discharge your debt within several months. With Chapter 13, you can protect property, negotiate to reduce your debt and pay it off over a period of several years without repossession of property or foreclosure.
- Bankruptcy is a federal action that allows you to keep specific exempt property from sale in a Chapter 7 bankruptcy. In many cases, the possessions most people wish to keep during a Chapter 7 bankruptcy are not taken for sale by the bankruptcy trustee.
Bankruptcy should always be a last resort and it cannot discharge all types of debt. In an age where credit scores are rapidly becoming an important financial and social measure, bankruptcy damages that rating. Missed payments and a poor payment history damage your score, too.
Filing for bankruptcy and eliminating unmanageable debt allows you to rehabilitee your credit score and your own financial well-being. If you are considering bankruptcy, seek reputable legal advice about the bankruptcy option right or you.