Making the decision to file for bankruptcy can’t be an easy one to reach. The thought of starting over when you’ve worked so hard to build your life may be an overwhelming thing to have to consider. Nevertheless, there are some benefits to filing for bankruptcy, or else you probably wouldn’t be considering it, right?
What is bankruptcy? Bankruptcy is a process wherein a person or business that is in a substantial amount of debt can have their slate wiped clean so to speak, legally, so they can start fresh with their lives and credit. There is obviously a lot that goes into this, such as the liquidating of most of your personal property to pay creditors.
The Benefits of Declaring Bankruptcy
Most people get into financial trouble at some point in their lives. It could be because of an investment decision that went bad; a divorce; job loss; or illness. Any number of life events can negatively impact your financial stability. When that happens, your debts can pile up quickly and there may be no way for you to get out from under them.
Even well established businesses can end up filing for bankruptcy in the end—think Toys R Us. You shouldn’t feel ashamed if you find that you are in a position where you need to file for bankruptcy. The best thing you can do is to look at the benefits and see if bankruptcy is the right option for you. Here are some of the advantages:
- When you file for bankruptcy an automatic stay will be put into place, keeping debt collectors from hounding you or repossessing your personal property, such as vehicles. They won’t be able to call you, sue you, or continue sending you letters.
- In some situations you may be eligible to discharge the obligation to repay your dischargeable debts.
- Some debtors are able to go through the process of bankruptcy without losing their property, by using bankruptcy exemptions.
- Even though a bankruptcy stays on your record for a long time, it is possible to begin rebuilding your credit right away.
- Sometimes a bankruptcy really is the better option. Spending years and years trying to pay off old debts doesn’t even help improve your credit. Your accounts could be so delinquent that even paying off those debts won’t help. Starting from scratch may give you the opportunity to truly raise your credit score and lead a better financial life.
Do You Need Help from a Bankruptcy Lawyer?
If you believe that you are eligible to file for bankruptcy and it’s the right step for you to take, you should probably get in touch with a lawyer. A lawyer will assist you through the bankruptcy process from start to finish, helping you make the best decisions and ensuring that you aren’t taken advantage of.
Reach out to a bankruptcy lawyer in Terre Haute to get help today. It may be time for you to get the fresh start you’ve been looking for.