Bankruptcy and Its Immediate Benefits

Nobody wants to live a life that is weighed down by debts. This can lead to a great deal of stress due to the constant hounding and harassment by lenders and creditors as they attempt to pressure you to repay them. Letters from law firms, repeated phone calls at your workplace or at home, an eviction notice, a bank account levy or garnishment – these are just a few of the tactics creditors use to make you pay and which can cause you immeasurable stress.

Even if you are facing serious financial difficulties and/or are being harassed by creditors, there is a solution that will allow you to regain control of your financial life and start anew – bankruptcy. There are a number of different forms of bankruptcy, each which offers varying benefits or meets the needs of varying debtors.

Typically however, filing for bankruptcy brings benefits that provide immediate relief from a number of financial concerns. The first of these benefits is the automatic stay, which ensures instant relief from creditors’ tactics as well as lawsuits, evictions or unpaid rent, foreclosures, unpaid utility bills, and wage garnishment. Debt discharges are often another benefit debtors receive when filing for bankruptcy. Chapter 7 bankruptcy in particular allows debtors to discharge, or eliminate, certain debts. Some examples of dischargeable debts are those from credit cards, line of credit, medical bills, unpaid rent, unpaid utility bills, and personal or signature loan.

Paying Non-dischargeable Debts Through Chapter 7 Bankruptcy

While unsecured debts may be discharged, freeing you from the financial burden and stress they cause, there are those that you will still need to pay after your bankruptcy case is completed – your secured debts. These can be accounted for through the sale or relinquishing of assets, like cars, homes, bank accounts, and jewelry. Some of debts that cannot be discharged are debts acquired through fraud, damages in respect of personal injury to someone, student loan, child support, taxes, criminal fines, and alimony.

Another way of paying secured and non-dischargeable debts can be done by having your assets sold by a court-appointed trustee, the method stipulated in Chapter 7 Bankruptcy, also known as liquidation bankruptcy. Going through this process can be complicated and frustrating, not to mention unnecessary, and, as such, many people seek the help and advice of a qualified bankruptcy lawyer.

One Responseto “Bankruptcy and Its Immediate Benefits”

  1. Bankruptcy is on the rise because of the economic crisis. Thank you for posting this information.

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