When it comes to bankruptcy, there are a quite a few misconceptions floating around out there. Any association with the term “bankruptcy” is overwhelmingly negative. If you’ve ever considered filing bankruptcy, you’ve probably wondered, “What are the benefits to filing bankruptcy?”. This is an important question to ask, and one we are happy to answer. The benefits can be divided up into six different sections.
Immediate Relief
As soon as you file bankruptcy, your creditors are required by law to leave you be. Any contact they make will have to be first through your attorney. Warding off creditors constantly attempting to collect can be exhausting, so bankruptcy is quite a relief from that battle.
Permanent Debt Relief
Bankruptcy wipes out most unsecured debts (i.e. credit card debt, medical bills, overdue utility payments, personal loans, gym contracts).
Keep Your Stuff
Filing bankruptcy can prevent foreclosure and it helps you maintain possession of your assets. In a Chapter 7 bankruptcy case, it allows you to reaffirm the debts for the items you’ve financed and continue to pay your creditor. In a Chapter 13 bankruptcy, it reorganizes your debt so you can pay them off in a period of 36-60 months so you can hold onto your possessions.
Rebuild Credit Score
When you file bankruptcy, it’s a great time for a fresh start and can be a wonderful opportunity to rebuild your credit score. There are a lot of resources out there on how to do this, but we highly recommend this book: Life After Bankruptcy
Process is Fast
Bankruptcy can be filed in a few days, it just depending on how fast you can get us the needed paperwork and pay the required fees.
More Access To Credit
With the rebuilding of your credit score that comes as a byproduct of filing bankruptcy, your ability to rent apartments, or buy a car, and eventually buy a home – with a low interest rates!
If you would like to discuss more benefits of bankruptcy to see if it’s the right option for you, give our office a call at 801-221-9911.