In reality, for most people there are far more than 5 advantages to filing bankruptcy; however, I thought I would highlight at least 5 obvious advantages.
Some people dwell on the negatives associated with bankruptcy without considering the long-term stress and problems afforded by a life with debt that you can’t afford to pay off. Bankruptcy has it’s merits for those who are struggling with debt.
Here are five advantages to filing for bankruptcy protection:
- You won’t lose your home as long as your equity is within the allowed exemption limit. Yes, many assets are sold off in bankruptcy to pay off debts. But it is very reasonable. Your home and car are exempt as long as they are under a certain value. If you stay current on payments, you may also be able to avoid a foreclosure by filing for bankruptcy.
- You get protection and stop garnishments. The automatic stay in bankruptcy means that from the moment you file bankruptcy, you can stop the harassing phone calls, emails and letters. Once you file, creditors are legally prohibited from contacting you about debt.
- Debt is discharged and/or a feasible plan is created to handle all of your debt. In bankruptcy, your debt can be discharged under Chapter 7, or consolidated into a payment plan you can actually afford in Chapter 13. In some cases, you don’t repay any or all of it. The shadow you have been living under just disappears because the court says so.
- Usually, none of your friends and family ever find out. Bankruptcy filings are public record, but filings have been at record levels since 2008, so they generally aren’t publicized. So the reality is that your friends and family won’t know unless you decide to tell them directly yourself.
- Start fresh. Bankruptcy was made into law to give people a way out of debt. The whole point is to put whatever got you in that position behind you and move on with a fresh start. Figure out what landed you here, if you can do anything to prevent that from happening in the future, and then move on with your life by starting to rebuild good credit.
Over the past 27 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can stop your garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.