Bankruptcy Benefits

: Reese Baker & Associates

  Filed under: Filing bankruptcy

Filing bankruptcy can do more than just relieve you of debt, it also has other benefits involved. Most people are aware that bankruptcy can solve most of your financial problems by eliminating all of your qualifyings debt, such as:

  • Credit card
  • Medical debt
  • Utility bills
  • Old taxes
  • Some student loans
  • Personal loans
  • Payday loans

Chapter 7 bankruptcy can be the fastest and easiest way to get control of your overwhelming debt.

Stop Creditor Calls

Utilizing the automatic stay that goes into effect as soon as you file bankruptcy, the automatic stay prevents creditors from any collection attempts against you. All phone calls, letters, emails, wage garnishment, must stop. If a creditor continues to contact you after the automatic stay is in place, you can take them to court and sue for damages.

Keep Your Home

Filing bankruptcy also allows you to keep your home, whether an eviction or foreclosure is pending. You will have time to make arrangements either to vacate or by filing Chapter 13 you will have several years to gradually pay back the arrears and stay in your home. If you want to continue to keep the collateral, you will need to stay current on your house payments.

Keep your Car

Bankruptcy’s automatic stay stops the repossession process. You will have a few options here, either give up the vehicle and no longer have any financial responsibility for it, pay what is the current value instead of the entire loan due, or take three to five years to make the back payments.

Keep your Assets

In most cases, you will not lose any assets when you file bankruptcy. Depending on the type you file you could keep all of your assets. Each state has a list of exemptions that are protected in your bankruptcy case. If your state allows it, you can choose the federal exemptions instead if they are more favorable.

More Money to Pay Your Non-Dischargeable Bills

When you file Chapter 7, and your unsecured debt is eliminated, you will have more of your income to pay the debt that can not be discharged in bankruptcy. Child support, alimony, current taxes, fines, and fees to the government will never be wiped away in bankruptcy.

If you would like to know how bankruptcy can benefit you, contact a Rio Grande bankruptcy attorney today.