When your debt gets out of control, bankruptcy can help you start anew. If you are considering bankruptcy, it is best to consult a lawyer because of recent changes in the bankruptcy laws. Here are some advantages of filing for bankruptcy.
No More Harassment from Creditors
Once the bankruptcy is filed, the automatic stay goes into effect. Automatic stay is an injunction that prevents creditors from contacting you. They can no longer call you, send mail or sue you for payment.
Most of your unsecured debts will be discharged during a bankruptcy. This includes credit cards, personal loans and medical bills.
You Won’t Lose Your Property
If you file Chapter 7 bankruptcy, you won’t lose your personnel possessions, your car or consumer goods, like computers or televisions. Most people can keep their car and home.
Bankruptcy is usually a last resort and it should be. As soon as the bankruptcy is done, you can work on improving your credit score so recovering from it can be fairly quick. Some companies specialize in offering credit to people who have been through a bankruptcy. So with the slate wiped clean, you can start applying for credit cards and new loans right away.