Before declaring bankruptcy, it is essential to discuss the benefits you will get from it. If you cannot pay your debts and it becomes difficult to solve your financial issues, you can declare bankruptcy. It will help you improve your credit and live positively and financially stable.
However, filing bankruptcy might feel like a scary and overwhelming task. Most of the time, it is the right choice, depending on your situation. Contact a bankruptcy lawyer in Katy to discuss the benefits of bankruptcy.
How does bankruptcy benefit you?
Bankruptcy is designed to provide relief to those who cannot pay off their debts or their creditors back. Here are some of the reasons for which declaring bankruptcy is beneficial.
- After filing bankruptcy, it will trigger an “automatic stay” process. This process stops the creditors from taking action against you to collect remaining debts and prevents them from taking back property such as cars or personal property. Your creditors can not call you, send you letters, or sue you.
- Your credit will eventually increase after filing bankruptcy. You may also get more credit card offers from your bank. Credit cards will improve your credit score and give you access to safety features that comes with them.
- It may not prevent debts like student loans but can prevent the lenders from aggressive collection action.
- After filing bankruptcy, your interest payments will end at that point. You will no longer have interest counted into your account, neither are you responsible for paying them in the future. Get in touch today to speak with a Company Liquidation expert and get free, confidential help with closing a limited company.
- People who file for bankruptcy find relief by starting from new and fresh. It might not be a great advantage, but it will allow you to create a new and mentally free life.
- You can also hold off some of your assets after filing bankruptcy by making payments in smaller sums.
- You can apply for chapter 13 bankruptcy if you encounter another financial disaster before being eligible for chapter 7 bankruptcy.
- You will learn to prevent future financial catastrophes and live within your income if you do not have credit cards.
- When you file for bankruptcy, the collection efforts will be stopped completely. Your bank account levies and garnishments will stop, and covered debt collectors will stop contacting you.
- Bankruptcy will wipe out your medical, personal, or credit car loans. You do not need to pay for your unsecured consumer debts anymore.
There is no reason to be embarrassed or ashamed of declaring yourself bankrupt. Millions of Americans deal with debts every year, and they need help. Filing bankruptcy can be a complex procedure, so finding the right bankruptcy attorney is essential.