The Three Main Benefits of Filing Bankruptcy

Bankruptcy is a legal term that refers to the legal process by which an individual or business that has sold all of its assets is unable to pay its debts. If you intend to file for bankruptcy, you must retain the services of an attorney. To represent you, seek out a qualified attorney who is experienced in handling all types of bankruptcies. Consult with friends and the internet to find the best bankruptcy attorney. Bankruptcy can be a difficult process that requires an expert with strong communication skills. It would be beneficial to receive updates on various court proceedings, highlighting the importance of selecting a lawyer who communicates in a manner that is comfortable for you.

There are some advantages and disadvantages of filing bankruptcy for businesses and individuals.  If you compare bad credit vs bankruptcy, you’d gain a better understanding of what bankruptcy entails. Attorneys who specialize in bankruptcy are aware of the ramifications of bankruptcy and are familiar with the various strategies they can employ to ensure a favorable outcome. There are business bankruptcies public record systems online that one can access to understand bankruptcy policies and various businesses that have gone through the process.

There are so many benefits of filing bankruptcy, it’s a wonder that more people don’t choose it. They’ve heard too many myths about it, and believe it’s the endgame of their financial lives, when in truth, it’s the beginning of a new one–a fresh start. Although bankruptcy does spoil your credit for years afterwards, there are simply too many benefits of filing bankruptcy not to consider a viable option when your back is against the wall.

To help you see why it could potentially be the solution you need, here are a few of the benefits of filing bankruptcy!

1. The Automatic Stay and the Retention of Exempted Property.

Many times, people are forced into filing for bankruptcy because they’re about to lose their car or their home. While this sounds like a bad situation, there’s a silver lining that people overlook–the fact that bankruptcy allows you to keep these items! Immediately after filing, a debtor receives what’s called an automatic stay, which puts a stop to collection efforts of creditors. Debtors can no longer get their hands on a debtor’s vehicles, some clothing, furnishings, life insurance, pets, and portions of earned wages.

2. Eligible Debt Forgiveness.

This is usually the main reason, and one of the most important benefits of filing bankruptcy. Bankruptcy dischages eligible unsecured debts, lifting the burden of debt repayment from the debtor. The way that this is done depends on the kind of bankruptcy filed.

3. A Fresh Start.

Between these two benefits of filing bankruptcy, comes a fresh start. The statutory reprieve is to afford the debtor with a discrete period of time to financially regroup and devise a way to pay back their debts. This also gives them the chance to start building their credit back up.

These are just a few of the benefits of filing bankruptcy! If you have any questions, feel free to contact your local bankruptcy attorneys, or ask in the comments! See this link for more references.

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