Benefits of filing for bankruptcy
There are several benefits to filing for bankruptcy - legally, financially and emotionally. Firstly, and perhaps most importantly, you are taking a step toward regaining control of your life. You are in the driver’s seat. The advantages of filing for bankruptcy include the following.
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.
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, all legal actions and claims are halted.
Releasing you from your debt obligations - Bankruptcy eliminates your debt when you are discharged. Your Trustee in Bankruptcy will explain exceptions to you, such as alimony payments and child support, during your 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.
Protecting certain assets - When you file for bankruptcy, some assets 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. 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 costs and compare them to costs of other debt solutions.
For complete information about the benefits of filing for bankruptcy, please contact your local BDO office or request a call.