Apart from the plain advantage of not having the debt that lingers over your head daily, are there any other advantages of bankruptcy?
Consumers considering bankruptcy are faced with many questions and often wonder what the advantages could be, if any. There are many various aspects to consider before making a final decision. There are always choices, but opting for the right choice can be challenging. Below are some advantages that can help consumers make thought-consuming decisions that are fit for them. The advantages are not the deciding factor in any case; however, they can help you decide wisely.
The Automatic Stay
One advantage is when the consumer files for Chapter 13 or Chapter 7 bankruptcy, a petition is filed, and there is an automatic stay, which requires the creditors by law to cease all activities of collecting the debt. This means they must stop calling, leaving messages, or mailing you notices when notified of your intentions, and creditors can be penalized by the court system if their efforts continue. An attorney best handles this type of situation. Bankruptcy Attorneys or Consultants are available for a free consultation to answer any questions. They will help you see and learn the advantages of Chapter 13 and Chapter 7 bankruptcy. Each type of bankruptcy has its distinct set of disadvantages and advantages.
A Fresh Start
The advantage of having the opportunity for a fresh financial start is another significant benefit that a consumer must consider when deciding if filing a Chapter 7 is the perfect option for them. You can choose what debts you wish to file for Chapter 7 bankruptcy. This includes both secured and unsecured debts.
Your Options: Chapter 7 and Chapter 13
However, there may be better solutions than Chapter 7, as some unsecured debts, including most student loans, do not qualify for Chapter 7 bankruptcy. Ask your nearest bankruptcy lawyer about what debts may or may not be dismissed in a Chapter 7 bankruptcy. Consumers who are qualified for Chapter 7 bankruptcy may be forgiven or discharged from most unsecured debts. With a secured debt, the creditor is entitled to collect the debt by holding and selling different debtor assets if payments are missed.
Chapter 13 bankruptcy offers a better solution for those consumers who have secured debts, a regular income, and do not wish to lose their property. Though each person’s situation is different, everything must be assessed before deciding which type of bankruptcy suits them.
The Law Offices of Ronald E. Stadtmueller, a Bankruptcy firm in San Diego, can help you get quick relief and save your home as we guide you through repayment. Chapter 13 bankruptcy allows debtors to pay off a portion of their debts in installments. You can pay these installments over a three-to-five-year period under a court-ordered repayment plan. Contact us and have the remainder of your qualifying debt discharged. Filed individually or jointly with your spouse, Chapter 13 bankruptcy resembles loan consolidation that lowers your monthly payments to a manageable level. With more than 30 years of experience, we can help you file Chapter 13 quickly and efficiently.
Once you have filed for bankruptcy, your creditors must immediately stop collection efforts, including harassing letters and phone calls.
When you or a consumer decides to file for bankruptcy, whether Chapter 13 or 7, the consumer must take some classes and attend courses about debtor education and credit counseling. This is an advantage that not only aids you in figuring out what has gone wrong but will also aid you in finding new ways of paying bills, budgeting, and spending your funds to avoid running into the same financial difficulty in the future. The classes also teach you to protect against identity theft and read and monitor your credit report.
Employment After Bankruptcy
Consumers concerned about being dismissed from a job since they are filing for bankruptcy should not be worried sick. Another advantage is that employers are not granted to dismiss an employee based on the fact that they, the employee, are filing for bankruptcy. Bear in mind, however, that it may affect your ability to grab new employment for a few years after filing for bankruptcy.