Bankruptcy, Debt Negotiation, Wills & Personal Injury Representation

Taking advantage of these personal bankruptcy benefits

On Behalf of | Jun 20, 2024 | Chapter 7 Bankruptcy

If you’re drowning in debt, then you might be considering personal bankruptcy. It’s a big decision, but one that could ultimately put you on a path to a fresh start and financial freedom. But if you’re like most people considering bankruptcy, then you have some hesitations. Maybe you’ve heard horror stories about bankruptcies gone wrong, or you may have preconceived notions about the assets you’ll be able to keep once the bankruptcy process is finalized.

Previously on the blog we discussed some of the biggest misconceptions about bankruptcy, which we certainly encourage you to read since you shouldn’t fall prey to these erroneous beliefs. In this post, though, we want to highlight the benefits of personal bankruptcy so that you truly understand the opportunities you have at your fingertips.

The top benefits of filing for personal bankruptcy

There are several benefits to pursuing personal bankruptcy. This includes each of the following:

  • Eliminating debt: For many people who pursue bankruptcy, this is their top priority. A Chapter 7 bankruptcy can shed otherwise crushing debt, lifting the burden that’s been weighing on your shoulders for so long. Even if you don’t qualify for Chapter 7 bankruptcy, you might be able to utilize a Chapter 13 filing to restructure your debt and secure more manageable payments. This, too, can lead to a faster elimination of overwhelming debt.
  • Halting collection efforts: When your debt obligations become unmanageable and spiral out of control, you can find yourself on the receiving end of aggressive collection efforts. The strategies used by these debt collectors can feel like harassment, and you might be afraid to answer the phone anytime it rings. Bankruptcy can stop these collection efforts, giving you the peace of mind you deserve.
  • Stopping foreclosure and repossession: Unpaid debt can lead to foreclosure and vehicle repossession if you’re not careful. This can create a lot of uncertainty in your life, leaving you with nowhere to turn in your time of need. By filing a personal bankruptcy petition, though, you put a stay on any repossession and foreclosure activity. This can give you time to get caught up on mortgage and auto loan payments, or at the very least give you the opportunity to come up with a secondary plan.
  • Preventing wage garnishment: Collection efforts on your debt may include wage garnishment. This process can leave you in a difficult financial spot, where you don’t have the funds needed to meet your basic necessities. You can prevent this by filing for personal bankruptcy.
  • Turning your credit around: This might seem counterintuitive since a bankruptcy will negatively impact your credit score for a period of time, but many people who seek bankruptcy already suffer from low credit scores. By wiping out your debt through the bankruptcy process, you can start anew and diligently work to rebuild your credit. That way you give yourself a shot at building the life that you want.

Fully inform yourself about the bankruptcy process

There’s a lot to know about the bankruptcy process. If you’re misinformed or give in to erroneous perceptions of the process, then you can miss out on an opportunity that you need to reclaim your life and your financial future.

So, if you’re being overwhelmed by debt, then now is the time to fully consider personal bankruptcy and what it has to offer you. If you’d like to learn more about the process, then please continue to read our website and our blog and access any other resources that might help you make the decision that’s right for you.