Home Business Legal The Benefits Associated with Filing for Bankruptcy

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There are many people who refuse from the idea of filing for bankruptcy because they think that this step is associated with a number of risks and serious consequences. However, they should know that this process can provide them with many benefits. That’s why it is advisable to think about taking this step if you need to solve your financial problems in an effective way.

a man with an empty walletIt is necessary to treat bankruptcy as your last resorts, and this means that you need to try other available solutions before making this kind of decision. If you want to ensure that everything is done properly, you should use the legal services of qualified attorneys, such as ariano and reppucci pllc. They will provide you with helpful guidelines and recommendations.

1)      One of the best parts about filing for bankruptcy is that you can get rid of annoying collection calls. That’s because you are provided with the so-called automatic stay. This type of order prevents your creditors from taking different actions in order to collect their debts. It is clear that they are not allowed to send letters or call during the whole process. If they violate this order, they risk ending up with quite serious consequences, since they break laws. This is how you can get some peace of mind and time to concentrate on your debt relief.

2)      The main benefit of bankruptcy is that you are going to get rid of your debts. It is necessary to choose between two available options – Chapter 7 and Chapter 13. This is what will help you eliminate almost all unsecured debts that you have. If you decide to file for Chapter 13 bankruptcy, it is required to develop a special plan that can fit your budget. This option will help to protect your valuable secured debt assets.

3)      At times, some people are afraid of taking this step simply because they are afraid to lose their assets, such as vehicles or real estate. The great news is that bankruptcy filing can stop repossession and foreclosure processes. As soon as you file for bankruptcy, it becomes possible to stop all collection action until this process is complete. When dealing with Chapter 7, some of your assets are at the risk of liquidation, but you are provided with enough time to save them by developing an effective plan of action. That’s why you should think about taking this step, especially if you don’t have any other available solution left.