Very often, the negative aspects of filing bankruptcy are pointed out. However, there are few times the benefits of filing bankruptcy are discussed.
There are many benefits of filing bankruptcy.
The most obvious, of course, is that debt can be eliminated in a short period of time. But what else can bankruptcy do?
Bankruptcy can allow a person to keep property that might otherwise be lost. Borrowers that face foreclosure or repossession can use bankruptcy to prevent the loss of their home or vehicle. Bankruptcy can give an unfortunate borrower time to get current on missed payments or to complete the loan modification process. This benefit of filing bankruptcy may be the difference between becoming homeless or not.
Protect Income and Bank Accounts
Another benefit of filing bankruptcy is the ability to protect income and bank accounts. Creditors are allowed to garnish wages and seize bank accounts with a judgment from the court. Undoubtedly, this interruption to income can wreak havoc on a borrower’s ability to pay for necessities. Filing bankruptcy can stop these actions. When a bankruptcy case is filed, an Order called the automatic stay goes into place and prevents any further collection activity. This includes garnishments from a judgment.
Peace of Mind
Peace of mind is yet another benefit of filing for bankruptcy. Borrowers that are considering filing bankruptcy usually are dealing with an avalanche of problems. Whether it’s loss of employment or medical issues that caused financial distress, those problems are often exacerbated by aggressive creditors. Multiple phone calls from creditors every day can become wearisome, and occasionally, the calls are threatening. This worry can be alleviated by filing a bankruptcy case.
Contact W M Law
So, while there are negative aspects to filing bankruptcy, those must be weighed against the many numerous benefits to filing bankruptcy. You can use bankruptcy to get a fresh start. If you have any questions regarding bankruptcy, feel free to contact WM Law for a free, no-obligation consultation. We are Here to Help.