The Good Sides To Bankruptcy
If you are finding yourself having financial problems and not be able to pay your bills on time, you may be considering filing bankruptcy. If you are thinking about bankruptcy, then you may have a lot of questions about the process and if it is really to your advantage to file for it. Today we’re going go over the advantages to filing bankruptcy. Keep in mind there are a lot of aspects to consider and each personal situation is unique to themselves this is why talking to a bankruptcy attorney is always good idea.
Automatic Stay
One of the first advantages to filing bankruptcy chapter 7 or chapter 13 is the automatic stay. The automatic stay requires that creditors must stop trying to collect debt from you. Meaning that they cannot call you, leave messages on your phone, send you any notices in the mail; all the creditor harassing must come to a stop.
A New Beginning
Another advantage is that your will have a fresh start when you receive a bankruptcy discharge. If you decide and get approved for a chapter 7 bankruptcy, you can choose which secured and unsecured debts you want filed under the chapter. This means if you have a lot of unsecured debts such as credit cars or medical bills, you can get rid of all those bills.
Choices
The nice thing about bankruptcy is your have some options on what type of chapter you want to file under. If you have property you want to keep you may want to consider chapter 13, where you can keep your property and reorganize your debts so the payments are more affordable. If you mostly have unsecured debt and no property you then may want to consider chapter 7 bankruptcy where you can completely wipe away unsecured debt if you are approved.
Keep in mind that with the new bankruptcy laws, getting approved can be a bit more difficult, that is why talking to a bankruptcy lawyer is your worth your time. They know the laws and will know right away which bankruptcy is best for your situation and if you will get approved
Stopping Foreclosure
When you file for chapter 13 bankruptcy you may be able to stop the foreclosure for awhile. With the automatic stay the foreclosure process will be put on hold until the bankruptcy is worked out. So if you looking to try and save your home and need more time you may want to look into chapter 13 bankruptcy. It is highly recommended that you talk to a lawyer if you are in this situation.
A Fresh Start
After bankruptcy this is a time to get a fresh start in your life a clean slate. Learn from your mistakes and don’t get yourself in the same situation. Before you can even file bankruptcy you have to take a credit counseling class, so hopefully there you learn to manage you money and finances better. Learn new ways to budget your money and not get yourself back into this situation.
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