Is Bankruptcy A Way Out For You?
For many Americans who are deep in debt with no way to pay it back, filing for bankruptcy might be their last resort. And while some people may assume that bankruptcy is bad for you since you will have a negative label on your records, filing for bankruptcy actually have tremendous amounts of benefits. Here are some of the benefits that you gain once you file for bankruptcy:
1. You Will Be Able To Keep Your Home
Under most of the bankruptcy laws of different states, you may be able to keep the home that you live in since this home will be exempted from liquidation, especially if it is under a designated amount. However, if the owner owns more equity than the designated threshold, then they might have to liquidate their assets.
2. Your Creditors Will Not Bug You Anymore
For the people who have a lot of debt, they might get constant calls as well as surprise visits from the collection agents and creditors. This constant presence might be highly irritating. However, when you file for bankruptcy, your creditors will not be able to contact you or bug you anymore. If they still keep bugging you, then the court will have every right to penalize them.
3. Your Debt Will Be Discharged
In chapter 7 bankruptcy, the debtor will be discharged of any unsecured debt. This includes credit cards as well as medical bills. The chapter 7 and chapter 13 bankruptcies have different requirements and you would have to look into these requirements with your lawyer.
4. No One Will Know
Your family, friends, and acquaintances will never know that you filed for bankruptcy unless you tell them personally. You financial information will be private as long as you want it to be. The only moment that your filing would be known is the time that you ask to receive a credit history report while you apply for a new credit card or loan.
5. You’ll Get A Fresh Start Financially
After you are free from your debt, you will be able to start fresh. Filing for bankruptcy is not a bad option at all, especially when it is the only option that you have left. You should know that if you have the right legal representative by your side, then the whole process could be as easy and go by swiftly.