The Benefits of Bankruptcy Can Be Freeing

The following financial issues are some of the most stressful obstacles people face in life. However, there are ways to reduce or eliminate the following issues through Chapter 7 and Chapter 13 bankruptcies:

  • Collections: If debt collectors cannot reach you, they will call your family members and employers in an attempt to contact you. Filing for bankruptcy triggers the “automatic stay,” which will put an end to these harassing forms of communication immediately as you work with your bankruptcy attorney.
  • Garnishments and repossession: Ask yourself what is more embarrassing, having your items repossessed and your accounts garnished or filing for bankruptcy? If you have assets that are going to be garnished or repossessed, know that people who file for bankruptcy get to keep exempt items and some things like a car and a home.
  • Lawsuits: Collection lawsuits are a nightmare for people already struggling with debt, as there are often added costs associated with court and attorney fees. Under most circumstances, filing for bankruptcy ends collections lawsuits because of the automatic stay, which goes into effect when you file for bankruptcy and prohibits all collections.
  • Foreclosure: Banks must recognize when a bankruptcy is taking place. Under Chapter 13 bankruptcy, you can work out repayment plan that may allow you to save your home by reorganizing your debt.

Post bankruptcy life can be less stressful for those who had large amounts of debt. If your financial situation is a problem, contact our office now for a free consultation. We can find a solution that will fit your needs.

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