What are Some Benefits for Filing for Bankruptcy?
Dec. 14, 2022
Filing a Chapter 7 bankruptcy can provide numerous benefits. Here are several:
First and probably the most obvious. Bankruptcy can discharge (eliminate) most types of unsecured debt. This includes credit card balances, medical bills, and personal loans. By eliminating these debts, individuals can get that fresh financial start and allow you to move forward without the harassment from creditors and the burden of built up debt.
It can provide relief from creditor’s continued harassment. Imagine not getting call after call or letter after letter from creditors. Once you file for Chapter 7 bankruptcy, the automatic stay goes into effect. This automatic stay prevents creditors from taking any collection action against you, including calling you, sending you letters, or garnishing your wages.
It can stop garnishments and it can help you protect your assets. In a Chapter 7 bankruptcy, you may be able to exempt (keep) certain types of property, such as your home, your car, and your household goods. This can help you avoid losing these assets to creditors.
It can provide a faster resolution than other types of bankruptcy. Chapter 7 bankruptcy typically takes around three months to complete, while Chapter 13 bankruptcy can take three to five years. Trying to settle debt on your own could take years!!
Bankruptcy can actually improve your credit score in the long run. Many people incorrectly are told that you will never be able to obtain credit after filing bankruptcy. This is not true. While filing for Chapter 7 bankruptcy will initially have a negative impact on your credit score, it can help you get a fresh start and rebuild your credit over time. As long as you make your post-bankruptcy payments on time and manage your finances responsibly, your credit score should improve over time.
The reality of bankruptcy is it can provide true financial relief. Call Attorney Andrew K. Smith directly at 314-866-3955 to discuss whether filing for bankruptcy makes sense for you.