The Benefits of Bankruptcy
How Bankruptcy Can Actually Help You
Although the idea of bankruptcy may seem scary, this is more than likely due to thebankruptcy myths that are commonly reported as fact. In truth, there are many benefits to bankruptcy. It is not the dreaded remedy that everyone makes it out to be. In fact, bankruptcy offers protection to those in serious financial crisis and it could be the push you need to get back up on your feet. The most prominent benefits that bankruptcy provides include:
A Fresh Start
The main benefit is that it allows you to start over, free of the overwhelming burden of unmanageable debt. With a fresh start after a chapter 7, sometimes referred to as a fresh start bankruptcy, most of your unsecured debt, if not all of it, is cancelled. In a chapter 13, a payment plan is established specifically around what you can afford. Either way, you can start over with a realistic budget and the ability to save, plan, and take care of yourself in a way you were not previously able to manage.
Save Your Home
Bankruptcy can also help you avoid the foreclosure on your home. When it comes to bankruptcy, the minute your petition is filed you immediately stop foreclosure it its tracks. Creditors and lenders are not allowed to move forward and take your home because you will be protected under what is called the Automatic Stay. This type of bankruptcy is a valuable tool for homeowners, especially during these difficult financial times. Speak with our lead Attorney, Mr. Cain, today and find out how bankruptcy can help you keep the bank from foreclosing on your home.
Stop Creditor Harassment
Do you constantly get creditor calls, letters, and visits? If you are under creditor harassmentand scrutiny because you are behind on your payments, the pestering will not stop until all of your debts have been paid. With bankruptcy however, the Automatic Stay in the Unites States Bankruptcy Code 11 U.S.C. § 362 puts a stop to all creditor contact, lawsuits, foreclosure, or any other collection actions against you. Any creditors who violate this injunction could face legal consequences.
Are creditors garnishing your wages and taking your overdue payments out of your paycheck? This makes it very difficult to pay for critical everyday things like filling up your gas tank, putting food on the table, and paying your rent each month. The automatic stay under bankruptcy law also protects against garnishment whether it is being taken out of your wages or your bank account. It can also prevent utility companies from turning off your power, water and electricity. So hold onto your hard-earned money and learn how bankruptcy could help your financial crisis.
Although your credit will initially suffer some damage, bankruptcy will ultimately provide the opportunity for you to rebuild it. If you are in a position wherein you are considering bankruptcy, your credit would not currently be in a good state. Within a few years (2-4) of filing, it should have improved, provided you don’t otherwise jeopardize it. A bankruptcy lawyer from our Nashville firm can guide you regarding the steps needed to ensure that your bankruptcy is beneficial.
Take Advantage of the Benefits of Bankruptcy
As soon as you file for bankruptcy, creditors must cease to pursue payment from you. If you would like to experience the relief this brings, talk to Cain & Associates, PLLC. We are always happy to see our clients cease to have to worry about repossession, wage garnishment, lawsuits and similar threats relating to their financial situation. When the pressure of struggling to make ends meet is finally relieved, you can experience the difference in your life after bankruptcy. Bankruptcy may not always be for everyone and we believe in finding the perfect resolution to fits the needs of your situation, so contact us to learn about the alternatives to bankruptcy as well.