A Fresh Start: The Advantages of Filing for Bankruptcy

If you are having financial difficulties, you have undoubtedly looked at all your options to try to get your finances under control. The reality is, however, that there are some situations where it is all but impossible to actually handle on your own. It is precisely these scenarios that the bankruptcy laws were put in place for, and they are an excellent solution. Bankruptcy provides you with a variety of advantages that simply can’t be found anywhere else.

Eliminates Many Debts

In many situations, a bankruptcy will allow you to entirely wipe out certain debts. Things like credit card debt, unsecured loans, and other common debts that can cause major financial difficulties can be discharged entirely. For many people, this benefit alone makes bankruptcy an option that is well worth considering.

Forces Creditors to Negotiate

Creditors often try to play hard-ball with people in order to get them to pay the money that is owed. When in bankruptcy court, however, the creditors have lost the upper hand. Instead, they will be forced to offer reasonable concessions that will help you get back on your feet. Even if certain debts can’t be entirely eliminated, you can often have interest rates reduced or eliminated, fines and penalties waived, and extensions on your payment plans put in place.

Triggers an Automatic Stay

One of the biggest advantages of filing for bankruptcy is that it triggers an automatic stay on your accounts. This means that your creditors are legally obligated to stop all debt-collection activities. This includes repossessing property, halting foreclosure activities, calling you to ask for money, suing you, sending you collection letters, and much more. This one benefit alone can relieve an incredible amount of stress and anxiety so you can focus on improving your situation.

Immediately Puts You on the Right Path

When you emerge from bankruptcy, you will have a clear plan of action in place. Your bills will be more manageable, and you won’t be getting harassed by creditors all the time. In many situations, you’ll have just one payment to make to the courts each month until the remaining debts are paid. This is much faster and easier than you could have possibly handled it on your own.

Get the Help You Need

Bankruptcy is a major legal undertaking, and not one that you want to try to handle on your own. If you are thinking about filing, you want to speak with an experienced attorney first. Contact us so we can help determine what type of bankruptcy is best for you, and then walk with you throughout the entire process.