Benefits of Bankruptcy
When an individual, family or business falls into financial hardship, filing for bankruptcy can provide relief from overwhelming debt. There are advantages and disadvantages to filing for bankruptcy. Consulting with a professional bankruptcy lawyer can help you make the right decision on what is best for you as an individual, your family or your business.
Some of the benefits of bankruptcy can include the following.
Wages Attachments and Bank Levies
Filing bankruptcy can stop wage attachments and/or bank levies.
Discharge Credit Card Debt
Generally discharged with no obligation to pay on them again.
Discharge Medical Bills
Generally discharged with no obligation to pay on them again.
Strip Off Second Mortgages, Home Equity Lines of Credit and Judgment Liens from Your Property
You may never have to pay on your second mortgage or line of credit again. Judgment liens can also be removed under certain conditions.
Put your mortgage arrears on a payment plan and keep your house
Bankruptcy can force the bank to accept a payment arrangement to catch up the arrears over the next few years if you are able to resume your payments.
Stop Foreclosures
Bankruptcy can stop a foreclosure if you are able to resume payments and slowly catch up the arrears over the next few years.
Need time for loan modification?
Hire our office does not negotiate loan modifications, bankruptcy can stall a foreclosure process in order to give you, or your agent, time to negotiate loan modification options.
Discharge old tax debt or create payment plans for tax arrears
Taxes that came due within the last 3 years can be put on a payment plan over the next few years. Older taxes are potentially dischargeable with no obligation to pay on them again.
Reduce the principle on your car loan and/or get a better interest rate
Potentially pay only the market value of your vehicle instead of the bloated loan balance. A reduction in the interest you are paying may also be available. If you are behind on your payments the car can be paid off through the bankruptcy over the next few years. This can also result in a reduction in your payment.
Rebuild your credit
Bankruptcy may relieve you of substantial amounts of debt. Your credit may then recover because missed payment are no longer being reported and your debt ratio has improved. Paying bills on time for any secured debts you wish to keep, or on future debts you may incur, is essential to rebuilding your credit.
Discharge pending lawsuits and judgments entered against you
Bankruptcy may relieve your obligation to pay a creditor even if they have a lawsuit or judgment against you. Judgments recorded against your real property can potentially be removed, depending on which chapter of bankruptcy you file.
Stop repossession of your personal property
If you are being threatened with repossession, bankruptcy can halt any action. If you have a car that was repossessed you may be able to discharge any balance owed in bankruptcy.
End suspension of your professional license
Bankruptcy can sometimes release a suspension of your professional license. Under certain circumstances a bankruptcy discharge can release a suspension of your professional license.