Home Business Legal The Most Important Benefits of Bankruptcy

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a bankruptcy stop sign

All people who have serious problems with their finances have the right to file for bankruptcy. However, this option should be considered as their last resort after trying other methods, such as credit counseling. If you are not able to meet your debt obligations, you should think about filing your bankruptcy petition. Don’t take this step on your own. Look for experienced and well-educated lawyers who will help you succeed. You can find them in this ariano reppucci law firm.

You should understand that bankruptcy filing is associated with a number of benefits. Don’t forget about certain drawbacks because they should be evaluated to decide whether it is a good solution. Everything depends on your specific financial situation. Bankruptcy filing will have a direct effect on your future finances, and that’s why all pros and cons must be evaluated. There are certain facts that should be taken into account.

  • It becomes possible to get rid of most of your debts. Keep in mind that some of them won’t be excluded. For example, you still need to pay off your student loans, some taxes, child and spousal maintenance, fraud debts, and others.a bankruptcy stop sign
  • You can save your exempt assets. They usually include different household items, clothes, furniture, and so on. Other will be sold by a bankruptcy trustee to pay credit companies.
  • Bankruptcy filing will stay in your credit report for a few years. The good news is that you can use different tactics to rebuild it. Think about effective financial planning to avoid the same problem with debts in the future.
  • It won’t take a lot of time to complete this process. If you choose Chapter 7, your bankruptcy case will be over after 6 months. When deciding on Chapter 13, your repayment plan will last for up to 5 years. That’s why many debtors prefer the first option.
  • You will be provided with an automatic stay. This means that your creditors and debt collectors are not allowed to contact you and take their legal or other actions. If they try to send you letters, call and sue you, they will have to deal with certain problems and fines.

In summary, the best part about filing for bankruptcy is that you can get rid of your debt obligations. If you are not aware if this solution is right for you, contact local attorneys. They will provide you with their expert tips and recommendations after evaluating your current financial situation.