What Are the Benefits of Filing for Bankruptcy?

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Filing bankruptcy is one of the most important decisions you have to make in your life because your future credit and reputation are on the line. But if you find it extremely difficult to pay your debts and rebuild your credit, bankruptcy provides offers significant relief.

Consider the following advantages to filing bankruptcy:

Eliminate Unsecured Debts

The primary reason people file bankruptcy is to have all eligible unsecured debts discharged. This applies to both Chapter 7 and Chapter 13 bankruptcy. Unsecured debt includes credit card debt, medical bills, and car payments. When it comes to Chapter 7, the unsecured debt is discharged within three months. By contrast, the debt is discharged in Chapter 13 when you complete the repayment plan.

Obtain an Automatic Stay

As soon as you file bankruptcy, an automatic stay is established, preventing creditors from attempting to collect a debt, harassing you with phone calls, and taking any actions against you. This means you avoid wage garnishments, foreclosure, repossession, lawsuits, and judgments. The bankruptcy court instead establishes its own timelines for creditors to follow.

Retain Your Exempt Assets

Many types of property are exempt in bankruptcy, such as the family home, vehicles, household furnishings, clothes, life insurance, retirement accounts, and some earnings. State laws dictate which specific assets and dollar amounts are exempt.

Fresh Start in Life

Once your debt is discharged, you get to enjoy a clean slate. You can start applying for new credit cards and loans. Although the interests rates are favorable immediately, rebuilding your credit under these conditions is the best way to prove you are a responsible debtor. Despite the fact the bankruptcy filing will appear in your credit history for a decade, obtaining credit again within that time period is possible.

Matters are Private

Aside from requesting a credit history report when applying for a new credit card or loan, you have the ability to keep your financial information private during bankruptcy. That means your family, friends, and co-workers won’t ever know that you filed.

Take Advantage of the Benefits Today!

For more than two decades, I have helped thousands of clients obtain debt relief through bankruptcy, freeing them from the weight of insurmountable debt. If you want to get a fresh start on your finances and take back control of your life, I am here to help you.

For more information about the benefits of bankruptcy, contact us and request a free consultation from an Appleton bankruptcy attorney today.