Filing for bankruptcy is not as scary as most people make it out to be.
In fact, there are numerous benefits to be gained.
Although filing isn't necessarily for everyone, the benefits of the process can cover a wide range of issues that go along with financial hardships.
Big or small, the potential for relieving financial stress and getting back on track are enough to make it worthwhile.
Big Benefits One of the biggest reasons people file for bankruptcy is to stop credit collections.
Wage garnishments, repossessions and foreclosures can all be stopped by filing for bankruptcy.
When assets are at risk of liquidation, bankruptcy can offer a way to keep the property while working towards a debt resolution.
When you file for bankruptcy an automatic stay order is issued, which prohibits creditors from pursuing further action against you.
This order immediately halts all garnishment, collection, repossession or foreclosures in their tracks.
Once in bankruptcy, creditors cannot legally collect on a debt outside of any arrangement made by the court.
Further, creditors must adhere to the debt relief plan that is determined by the court.
Filing for bankruptcy essentially stops collections long enough for you to develop a plan and resolve your debts without the threat of losing your secured debt assets.
The bankruptcy process is essentially a legal medium that moderates your interactions with creditors and helps you negotiate a debt relief plan that works for your financial situation.
Small, But Necessary Although debt relief is the primary goal of bankruptcy, there are some intermittent benefits along the way.
Even if you are filing for Chapter 13, your repayment plan will still be easier than resolving debts outside of bankruptcy.
In a Chapter 13 repayment plan your debts will be repaid through a series of smaller payments spread out over a three to five year period.
In many cases, the interest fees on the account will be frozen and delinquency fees may be waived.
It is rare for a creditor to freeze interest or waive penalty fees outside of bankruptcy.
Another thing gained in bankruptcy is a lesson on finances.
Part of the bankruptcy process requires that you participate in a credit counseling course.
Although these courses are open to anyone looking to improve their money management skills, most people never take advantage of such resources unless required.
The skills learned in a credit counseling course are invaluable and can teach you habits to set yourself up for a financially solid future.
In fact, there are numerous benefits to be gained.
Although filing isn't necessarily for everyone, the benefits of the process can cover a wide range of issues that go along with financial hardships.
Big or small, the potential for relieving financial stress and getting back on track are enough to make it worthwhile.
Big Benefits One of the biggest reasons people file for bankruptcy is to stop credit collections.
Wage garnishments, repossessions and foreclosures can all be stopped by filing for bankruptcy.
When assets are at risk of liquidation, bankruptcy can offer a way to keep the property while working towards a debt resolution.
When you file for bankruptcy an automatic stay order is issued, which prohibits creditors from pursuing further action against you.
This order immediately halts all garnishment, collection, repossession or foreclosures in their tracks.
Once in bankruptcy, creditors cannot legally collect on a debt outside of any arrangement made by the court.
Further, creditors must adhere to the debt relief plan that is determined by the court.
Filing for bankruptcy essentially stops collections long enough for you to develop a plan and resolve your debts without the threat of losing your secured debt assets.
The bankruptcy process is essentially a legal medium that moderates your interactions with creditors and helps you negotiate a debt relief plan that works for your financial situation.
Small, But Necessary Although debt relief is the primary goal of bankruptcy, there are some intermittent benefits along the way.
Even if you are filing for Chapter 13, your repayment plan will still be easier than resolving debts outside of bankruptcy.
In a Chapter 13 repayment plan your debts will be repaid through a series of smaller payments spread out over a three to five year period.
In many cases, the interest fees on the account will be frozen and delinquency fees may be waived.
It is rare for a creditor to freeze interest or waive penalty fees outside of bankruptcy.
Another thing gained in bankruptcy is a lesson on finances.
Part of the bankruptcy process requires that you participate in a credit counseling course.
Although these courses are open to anyone looking to improve their money management skills, most people never take advantage of such resources unless required.
The skills learned in a credit counseling course are invaluable and can teach you habits to set yourself up for a financially solid future.