Here’re The Benefits Of Filing Bankruptcy And The Most Recommended Bankruptcy Type

Bankruptcy is an influential legal tool to offer thousands of Americans with comprehensive, expansive debt relief every month, every year. The key advantages of bankruptcy is that it enables you to walk away from the credit card bills, mortgage bills, medical bills, obligations due to underemployment or job loss and other types of debts that have overwhelmed your well-being as well as financial health. In other terms, most of your obligations will go away.

There will be no more calls from the creditors. Bankruptcy debt relief is simply beyond just getting relieved from a crushing debt –

As soon as you file for bankruptcy, it will put an end to the harassment calls from the creditors. To most bankruptcy filers, this is a big relief. Once you successfully file for bankruptcy, you no longer suffer the humiliation and indignity of disconcerting collection calls. In reality, you will not need to stress out about attending any debt collection calls, because bankruptcy outlaws this attempt for good.

It enables you to retrieve your assets after possession or keep it. It also gives you an option to reduce your monthly imbursement –

In most cases, people who file bankruptcy are allowed to keep their assets. If your assets have recently been repossessed, filing bankruptcy will give you back the opportunity to reclaim them. Now, if you file Chapter 13 bankruptcy, you can also cut back on your car payments.

Bankruptcy stops foreclosure and can also reform your mortgage payments so that you can make your house reasonable again –

If truth be told, bankruptcy puts halt over foreclosure process against your house, meaning allowing you and your family an absolute peace of mind and levelheadedness. Moreover, bankruptcy enables most of defaulters to hold onto their homes. The exhaustive loss mitigation process by the bankruptcy court empowers the defaulters to reform their mortgage payments to make their house more reasonable and to circumvent the damage of foreclosure.

Bankruptcy allows defaulters and their families a fresh financial beginning –

Most defaulters with mounting debt can’t even think of starting all over again with their finances. Simply put, a fresh beginning with the finances can be considered a prospect to live their life with absolute peace of mind. This refers to the freedom of opening an email or answering a phone call without the fear of getting charged for debt. A fresh start also means getting a second chance to organize all the financial affairs while rebuilding credits.

Now that there are types of bankruptcies to file to discharge debts, very few defaulters can recognize which type fits their financial status best. An attorney here serves the purpose better. The most common bankruptcy types are Chapter 7 bankruptcy and Chapter 13 bankruptcy, however, Chapter 7 is more advised and here’s why –

Helps discharge most of your unsecured debts

Upon filing Chapter 7 bankruptcy, an ‘automatic stay’ is granted, which keeps you protected from the creditors. As per law, as soon as you acquire automatic stay, you do not have to pay your unsecured debts anymore. You will be owing no expensive medical bills anymore, high interest credit card bills or any other obligations that aren’t convoyed by a collateral. These obligations get eliminated. No more debt collection calls, garnishment, neither will there be any more harassment attempts from creditors.

The process is faster

Chapter 7 bankruptcy filing process typically takes as little as 4-5 months, including initial meetings, consultations with the bankruptcy attorney, debtor education courses and credit counseling, discharge issuance from the court and 341 meeting with the trustee and attorney. Defaulters who file Chapter 7 bankruptcy could expect to go from a traumatic state with excruciating debt to a relieved state over a span of a year.

You become eligible to apply for loans again

Once you are eliminated from all the possible unsecured debts, you officially start the recovery process. With your credit scores rising all over again, you start qualifying for loans along the way. Although there’s no fixed time period for your credit to take the surge up, however dragging debt by avoiding bankruptcy will only wane your credit. Bankruptcy gives you an antidote for getting your credit back on path so you could apply for loan again.

Recovery Law Group recommends you consulting with an attorney regardless of any financial state. The attorney fees are meager compared with those penalties levied, upon putting up any misleading information during the filing process.

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Created on Apr 20th 2020 05:09. Viewed 481 times.

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