1) Filing for bankruptcy can give you a fresh start
If you are struggling with debt, filing for bankruptcy can give you the fresh start you need. When you file for bankruptcy, your debts will be discharged, which means you will no longer be responsible for repaying them. This can provide you with the financial relief you need to get back on your feet.
2) Fewer Creditors
One of the primary benefits of filing bankruptcy is that it can help to reduce the number of creditors that you owe money to. When you file for bankruptcy, an automatic stay is placed on all of your debts, which means that creditors are not allowed to contact you or take any action to collect the debt. This can provide some much-needed relief from creditor harassment.
3) More Time to Repay Debt
Another benefit of bankruptcy is that it can give you more time to repay your debts. If you file for Chapter 7 bankruptcy, your non-exempt assets will be sold and the proceeds will be used to pay off your creditors. If you file for Chapter 13 bankruptcy, you will be given a repayment plan that will allow you to repay your debts over a period of time, typically three to five years. If you are struggling to repay your debts, filing for Chapter 13 bankruptcy can give you the time you need to reorganize your finances and come up with a repayment plan that works for both you and your creditors. Under Chapter 13 bankruptcy, you will continue your life as usual while under the protection of the bankruptcy court. This allows you to restructure your debts and develop a plan to repay them over time.
4) Lower Interest Rates
Another benefit of filing bankruptcy is that it can help to lower the interest rates on your debts. When you file for bankruptcy, an automatic stay is placed on all of your debts, which means that creditors are not allowed to increase the interest rate on your debt. This can save you a significant amount of money over time.
5) Protection from Wage Garnishment
Filing for bankruptcy can also help to protect you from wage garnishment. Wage garnishment is when a creditor takes a portion of your paycheck in order to repay a debt. When you file for bankruptcy, an automatic stay is placed on all of your debts, which means that creditors are not allowed to garnish your wages.
6) Protection from Repossession
Once you have filed for bankruptcy , an automatic stay goes into effect , which protects individuals from their creditors during the process . This means that creditors cannot contact individuals who have filed for bankruptcy or take any action against them in an attempt to collect on their debts . The automatic stay provides individuals with some much – needed protection and peace of mind during what is often a difficult and stressful time. Filing for bankruptcy can also help to protect you from repossession. Repossession occurs when a creditor takes back property that was used as collateral for a loan. When you file for bankruptcy, an automatic stay is placed on all of your debts, which means that creditors are not allowed to repossess your property.
7) It can help protect any co-signers
Chapter 13 also has a special provision that protects third parties (co-signers)who are liable with the debtor on “consumer debts.” Finally, the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
8) It can help you keep your home
If you are at risk of losing your home to foreclosure, filing for bankruptcy can help you keep it. When you file for Chapter 7 bankruptcy, the automatic stay will stop foreclosure proceedings against your home. This gives you time to catch up on missed mortgage payments and save your home from foreclosure.
9) It can help you keep your car
If you are at risk of losing your car to repossession, filing for bankruptcy can help you keep it as well. When you file for Chapter 7 bankruptcy, the automatic stay will stop repossession proceedings against your car. This gives you time to catch up on missed car payments and keep your car from being repossessed.
10) It can help you discharge some of your debts
Not all debts can be discharged through bankruptcy, but there are certain types of debt that may be eligible for discharge under either Chapter 7 or Chapter 11 . These include credit card debt , medical bills , personal loans , and business debts . If any of these types of debt make up a large portion of your total debt load , filing for bankruptcy may be a good option for getting rid of them.
11) You ‘ll receive credit counseling services
When you file for bankruptcy , one of the requirements is that you must receive credit counseling services from an approved provider . These services are designed to help educate individuals about money management and assist them in developing a budgeting plan . The credit counseling services may also include advice on how to avoid falling into debt in the future.
12) Your taxes may be discharged
In some cases , taxes owed may be eligible for discharge through bankruptcy . This includes federal income taxes that are more than three years old and state or local taxes that are more than two years old . However , there are certain requirements that must be met in order for taxes to be discharged , such as proving that paying the taxes would create an undue hardship on yourself or your family.
Bottom line call The Integrity Law Group for help with the bankruptcy process. Their team of experienced bankruptcy, debtor and creditor attorneys will be there with you every step of the way.