The Top 4 Benefits of Filing for Bankruptcy - and How a Lawyer Can Help
Jan. 17, 2023
As a St. Louis bankruptcy lawyer, I can tell you that the eventual benefits of filing for bankruptcy are often well-worth the initial sacrifices you’ll have to make. Of course, filing for bankruptcy is not for everyone, and you should always discuss your situation with an attorney before making any decisions that can affect your legal rights.
Some of the most important benefits of bankruptcy are discussed in detail below. For more information or to get started, call today to speak with a lawyer.
You Can Stop Collection Attempts
For a long time now, you have likely been threatened by debt collectors with repossessions and other collection activities. For example, you may have a vehicle that you rely on every day that is now in danger of being taken away because you simply don’t have the means to pay your car loan.
When you file for Chapter 7 or 13 bankruptcy through your St. Louis bankruptcy lawyer, an interesting thing happens. All of a sudden, you begin to notice that you aren’t calls or letters from bill collectors, and it’s because of the automatic stay. The automatic stay is “an injunction that is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtor’s property.” In other words, when you file for bankruptcy, the calls stop.
You Can Avoid Wage Garnishments
When all you’re trying to do is take care of the most basic needs (like rent), the last thing you need is something to happen to your wages! So many people are already living paycheck to paycheck, many to the point they feel like eviction may be in their near future. In Missouri, creditors can take up to 25% of your pay. These spontaneous, scary instances can be avoided by filing for bankruptcy, and you can give yourself much more time to take care of your debt.
You Can Fix Your Credit
If you can make it through the initial period of bankruptcy when your credit will be negatively affected, you will make it to the light at the end of the tunnel, which is a future of a much better credit score! By filing for bankruptcy, you are able to get the negative reporting to stop due to the discharge of the debts. This will empower you to start getting your credit back on track.
You Can Finally Get Your Finances On Track
When you first file for bankruptcy, yes, your credit score will be unfavorably affected. It is advised during this period of financial recovery that you stay focused, and put off thinking about making large, unimportant purchases for a while. Think of your filing as your opportunity to finally get things right for yourself financially. It’s good to envision how positively your future will be affected instead of worrying about the financial sacrifices you have to make right now.
Contact Your St. Louis Bankruptcy Lawyer
If you are having trouble keeping up with your debts, you should call AKS Law Firm today. Attorney Andrew Smith has been helping people throughout the St. Louis metro area obtain freedom through bankruptcy. To schedule a free case evaluation, call our office today or contact us online.