Benefits of filing for bankruptcy
There are several benefits to filing for bankruptcy - legally, financially and emotionally. Firstly, and probably most importantly, you are taking a step toward regaining control of your life. You are in the driver’s seat. Advantages of filing for bankruptcy include:
Regaining control of your financial situation. Filing for bankruptcy puts you back in control of your financial situation and gives you the opportunity to make a fresh start. With the weight of unmanageable debt gone, you can to work toward achieving your financial and life goals.
Stopping harassing calls from creditors. Bankruptcy filing puts an end to the stressful and aggressive phone calls from creditors and the collection agencies who work for them. There is no point in them calling you anymore because they cannot do anything to make you pay them.
Freezing interest payments. At the time you file for bankruptcy, the interest charges on your credit cards, loans or other debts is frozen and will stop accumulating.
Legal action from creditors is stopped. When you start the bankruptcy process, any actions taken by lawyers are halted.
Releasing you from your debt obligations. Bankruptcy means that when you are discharged, your debt has been released and you are no longer required to make payments to your creditors. Your trustee in bankruptcy will explain exceptions to you, such as alimony payments and child support, during your free consultation and assessment.
Your wages are no longer garnished. Employers who had received a court order requiring them to take money from your wages to pay a creditor will stop this.
Protecting certain assets. When you file for bankruptcy, there are some assets that cannot be seized by a collection agency or creditors.
Providing a cost-effective debt solution. Compared to many other debt solution options, filing for bankruptcy is often a lower cost compared to others. Debt consolidation loans, payday loans, or an informal arrangement are often higher cost options due to the interest charges and lack of reduction in your overall debt amount. Your trustee in bankruptcy will explain the cost of filing for bankruptcy and compare the costs of other debt solutions for you.
While the process of filing for bankruptcy often causes feelings of embarrassment, sadness and fear, these benefits that can help ease these feelings and relieve you of the financial and emotional stress that debt has caused.
For complete information, and to answer your questions thoroughly, we encourage you to contact your local BDO office or request a call.