The Benefits of Filing for Bankruptcy
Is bankruptcy right for you?
When struggling under mounting debt, most people are unsure of what to do next. Creditors may be calling incessantly, demanding for debt to be paid, but even then, some people are hesitant to consider bankruptcy as a viable option—as common bankruptcy myths have given people the wrong idea of what life after bankruptcy is really like—but the benefits of filing can often provide a successful future for those in financial turmoil. To start, it is helpful to differentiate fact from myth when it comes to filing for bankruptcy.
You can Rebuild Your Credit Faster
Despite what many people believe to be true, bankruptcy does not adversely affect your credit for 10 years after filing, and you will not be left with nothing. Many people are able to avoid home foreclosure when filing for bankruptcy, as well as the repossession of their assets. Although one ramification could include a damaged credit score, bankruptcy provides people with the option to start over and rebuild their life. If they can manage to create a successful life for themselves after bankruptcy, their credit can improve after just 2-4 years.
Evade Creditor Harassment
Creditors have a tendency to violate debtors’ rights when they are behind in payments. In most states, creditors are not permitted to call before 8am or after 9pm and if you ask them to stop calling you at work they must oblige. Filing for bankruptcy can stop creditor harassment altogether. Immediately after you file the petition for divorce, legally the creditors cannot come after you. Under the protection of the “Automatic Stay” in the U.S. code § 362, creditors can longer sue you, file a lawsuit, garnish your wages, garnish your bank account, or contact you in any way to collect debts.
You can Keep Your Home & Your Car
In most bankruptcy cases, there are exemptions that you can place on your personal property, assets and goods, including your house and your car. You are actually more at risk for a foreclosure or car repossession if you don’t file for bankruptcy because if you are delinquent on your payments, the creditors will come after you, sue you, garnish your wages, garnish your bank account or try to have the bank foreclose on your house. If your home is at risk for foreclosure contact Cain & Associates, PLLC as soon as possible so we can fight to hold onto your personal property.
Aggressive Legal Aid in Your Time of Need
Get a fresh start!
Some of the many benefits of filing for bankruptcy include the opportunity for you to get out from under the burden of your debts. There are several different options to consider when filing for bankruptcy, but a knowledgeable attorney can help you to discern which path will yield the largest success for you in the future. When filing for Chapter 7 bankruptcy, also known as “fresh start bankruptcy,” it provides an opportunity for you to be cleared of much of your incurred debt. This means that you will have a chance at a fresh start, essentially debt-free.
Set up a Realistic and Affordable Repayment Plan
Another bankruptcy option, filing for Chapter 13, could provide you with the stability of an affordable payment plan. This means that your debt can be paid off at a rate in which you can manage usually between 2-5 years, as per ordered by the court. Usually this would allow you to pay of your debt over an extended period of time without interest, and without creditors harassing you night and day. The court can order a stay that would prohibit creditors from calling anymore once you’ve filed for bankruptcy.
No One Has to Know
Bankruptcy does stay on your credit history report for 10 years, but it does become public knowledge unless you are a prominent social figure in society and your life has vast public disclosure. When you file for bankruptcy the only people that will be notified are the creditors, the bankruptcy court, the IRS, and the people you choose to tell yourself. In cases of wage garnishment, your employer will be notified and told to withhold a certain amount of money from your pay. Also if a credit card company or lender asks to see a credit history report, they will see it as well. When it comes to your friends, family and coworkers however, you have the right to keep your decision private.
Cain & Associates, PLLC Can Help
Once you have made the decision to file for bankruptcy, it is important to have qualified legal representation on your side. With the help of a knowledgeable attorney, you will never have to guess at which bankruptcy option is best suited for you. At Cain & Associates, PLLC, our dedicated team of bankruptcy lawyers knows how difficult it can be to feel stuck under your financial struggles. Our firm always delivers compassionate assistance throughout the entire legal process and always makes sure that our clients are satisfied with the future that we have planned out for them through the bankruptcy process. If you are lost in the complicated legal matters of filing for bankruptcy, Attorney Cain can help, call today!