Should you consider filing for bankruptcy

‘Should I file for bankruptcy?’ this question seems to hover in most individual minds experiencing major financial crisis. In general bankruptcy isn’t the first thing to consider. But, severe financial obligations, heavy debts, unemployment may glide one’s mind towards considering filing bankruptcy.

But it’s important that you study all your options before you opt to file for bankruptcy. If all the other resources and avenues have exhausted leaving filing bankruptcy as the only outlet, then just go for it without being embarrassed about it.

Bankruptcy gives you a chance to end the financial mess, turn your life around and begin building it up again newly. Bankruptcy also stops foreclosure, puts an automatic stay on further collection of debts and gives relief from the burden of overwhelming debts.

Personal/Individual Bankruptcy can be classified as Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 or also called straight bankruptcy is concerned to liquidation where the insolvents assets and resources are liquidated and the debtor is relieved from further liabilities. On the other hand, Chapter 13 also known as wage earner/re-organization bankruptcy deals with restructuring the debts and providing various adjustments to clear your debts over a period of time.

But you should always seek advice from an expert bankruptcy attorney before filing for bankruptcy. This way you come to know if you have other alternatives or if you are eligible to file for bankruptcy. Bankruptcy attorneys, being legal experts at bankruptcy law, advise and guide you appropriately.

In brief, Bankruptcy filing for any individual ought to be a great alternative to discharge current financial situation and start fresh.

Bankruptcy and its Benefits

The term Bankruptcy is often looked with suspicion and fear, but the fact remains that for many people, it is the best option to escape the stress of insurmountable debt and to gain a new financial start. Here is a list of some potential benefits in filing bankruptcy for protection.

Benefits of Bankruptcy

·         Puts an end to harassing letters and phone calls from debt collectors during the bankruptcy process.

·         Stops repossession of your property and may force creditors to return property that was already repossessed.

·         Stops wage garnishment during the bankruptcy process. 

·         Puts an end to the foreclosure process and provide you with enough time to catch up on your payments.

·         Provides you with an opportunity to dispute any claims made by your creditors that you believe are false or inflated in an effort to gain more from you than what they are owed.

·         The most important benefit of all is that bankruptcy allows for the discharge, or forgiveness, of most, if not all, of your debts. Once you receive a bankruptcy discharge, you are not required to pay off those forgiven debts.

If you are seriously thinking to file for bankruptcy protection, then it is beneficial to consult a bankruptcy attorney who can guide you through the often complicated and confusing process. Having an attorney on your side will certainly provide you with the peace of mind that comes from knowing that you have all your bankruptcy bases covered.