Benefits Of Bankruptcy

LOUISVILLE BANKRUPTCY ATTORNEY

What are Advantages of Filing Bankruptcy?

While it is true that filing bankruptcy can affect a person’s finances, for many, filing is the best option. Every person’s financial circumstance are unique to his or her situation. Deciding if or when to file for bankruptcy is a complicated process and the consequences of making the wrong decision can be considerable. It’s important to consult with an experienced bankruptcy attorney to determine your best options. Oftentimes, those struggling with the decision ask, “What are the advantages of filing bankruptcy?”

Stop Harassments

Filing for bankruptcy will stop the harassments. Collections come to a stop, and your creditors have to leave you alone. Once you file for bankruptcy, the court automatically issues a stay against all debt collection activity. This does not cancel your debt, but it does mean that calls or letters from debt collectors cease. 

Stop Wage Garnishment

Not only does the automatic stay interrupt standard collection calls and letters, it also covers other actions.

Stop Foreclosure and Repossession

Bankruptcy can relieve the pressure of mortgage defaults. If you can "exempt" an asset, this means the asset is protected from being seized during the bankruptcy. Some exemptions will protect up to a certain dollar amount, while other exemptions will cover the entire value of the asset.

Restore Credit

Although most worry about credit ranking delays when filing for bankruptcy, many debtors actually start improving their credit scores after they file for bankruptcy. Once a person's dischargeable debts are cancelled, this allows them to move forward with a clean slate to begin rebuilding his or her credit.

Bankruptcy Advantages

If a creditor tries to collect a debt from you after the court has granted your automatic stay, your attorney can bring a contempt of court action against them. However, an automatic stay does not stop criminal proceedings, government tax audits, child support or alimony, or co-signers and co-debtors.

Everyone’s financial situation is unique to them. Deciding to file for bankruptcy should be a well informed decision. At O’Bryan Law Offices, we offer a free consultation to answer the questions you may have about the drawbacks or advantages of filing for bankruptcy. We’re a family-owned firm with years of experience helping clients get back on their feet. For more information, contact O’Bryan Law Offices for a free consultation.