Filing for a bankruptcy case is a serious matter and requires a significant amount of thought and consideration before jumping in. However, contrary to popular belief, bankruptcy substantives aren’t the end of the world.
You should make an effort to inform yourself before jumping into any situation, but bankruptcy especially. Unlike commercial contracts, a lot more is at stake when filing for bankruptcy. But if you’re committed to your decision, here are five benefits you should know about.
Keep Your Home
Contrary to popular belief, declaring bankruptcy doesn’t mean giving up all of you worldly possessions. For example, in New York, if an individual’s equity in their home is less than $50,000 or $100,000 for a couple, it can then be deemed exempt. This is only one of many bankruptcy issues that can be easily resolved.
Creditors Will Leave You Alone
If you file for bankruptcy or plan out a bankruptcy substantive, your creditors will stop hounding you. As a matter of fact, the moment you enter into a bankruptcy agreement and get into legal proceedings, you enter an automatic stay period meaning that your creditors can’t contact you. If they do, the court can punish them.
Discharged of Debt
Perhaps the most obvious benefit of bankruptcy is that depending on your situation, you’ll be discharged of all of your debt. When filing either Chapter seven or 13, you will be discharged of any unsecured debt including medical bills, credit cards, and car payments.
It’s a Private Decision
Unlike many other court proceedings and legal decisions, this is one that an be entirely private. None of your friends or family members need to know or make a big scene about it, which means it’s an easy, private affair.
Fresh Financial Start
Once all of the proceedings are finished and your debt has been discharged, you’ll get a completely fresh start in the financial world. Of course, this means it will take time to build up your credit again, but the fresh, debt free start you get is more than worth it.
