Accessible & Personalized Legal Counsel
Representing Missouri Residents Since 2009

The Three Biggest Benefits of Bankruptcy

At our St. Louis bankruptcy law firm, people ask us all the time about the benefits of filing bankruptcy. Regardless of which chapter of bankruptcy you file, here are three of the most significant benefits. There is a reason why bankruptcy lawyers use the phrase "bankruptcy protection.”

Automatic Stay

Per Section 362 of the United States Bankruptcy Code, filing a petition under chapters 7, 11, or 13 places an "automatic stay" in effect immediately. What does this mean? The automatic stay is like a temporary restraining order to protect you from your creditors, and it goes into effect automatically the minute you file for any chapter of bankruptcy. This means:

  • Your creditors can no longer call you on the phone

  • Your creditors can not mail you bills or overdue notices

  • Any wage garnishments you may have in place can no longer be collected on

  • Your creditors can not sue you regarding your debt

As St. Louis bankruptcy attorneys, the automatic stay is one of our favorite benefits of bankruptcy to tell our clients about. It does not require any additional paperwork, and the court notifies your creditors for you. All you have to do to get the full benefits of the automatic stay is file your bankruptcy.

Discharge

Our second favorite benefit of filing for bankruptcy protection is when our clients’ debts get discharged. A discharge in bankruptcy is like the automatic stay (which is temporary), except that it is permanent. Approximately 3 months after filing a Ch. 7, and once the Trustee has completed review of your case, your debts will be officially discharged. This means that you are permanently released from your dischargeable debts. Our local bankruptcy court in St. Louis, for example, uses this definition of discharge: “A release of a debtor from personal liability for certain dischargeable debts.” Here we have posted a full glossary of bankruptcy terms, and you can read more about what, for example, qualifies as a dischargeable debt. Not all types of debt can be discharged.

Fresh Start

"Fresh start," as you might have guessed, is not a phrase you'll find in any list of bankruptcy terms. Many people come in for free consultations with us and share truly upsetting stories of harassing creditors, ridiculously over-priced emergency hospitalization services, and so on. People often don't even realize how heavy the burden of these debts and creditors can become. Bankruptcy is a typical instantaneous relief of those burdens - and, therefore, a fresh start.

Talk to a St. Louis Bankruptcy Lawyer Now

AKS Law has extensive experience as a bankruptcy attorney in St. Louis. Hiring a lawyer can be daunting, so don't hesitate to read our testimonials and see what our clients have to say about us. For example, Amy wrote: “Andrew is personable, professional, quick to get back to you, honest and great to work with. I'd refer him to anyone!” Find out if these 3 benefits of filing bankruptcy can work for your situation today by calling us at 314-740.2989.