If so, then you’re required to acquire complete information on this debt relief option to pay off your debts.
However, most of the people are sceptical to file bankruptcy. This is because they think that filing bankruptcy can blemish their credit report.
Generally, average people are unaware of the advantages of filing bankruptcy.
If you want to know the advantages of filing bankruptcy, then continue reading the article.
Here are some of the advantages of filing bankruptcy when you file bankruptcy:
1.) Discharge most of the debts
Most of the people file bankruptcy to discharge their unsecured debts. If you get discharge from the bankruptcy court, then you’re not liable to pay off the debts. Practically, most of the debts are discharged in bankruptcy.
There are some of the debts that you may not be able to discharge even after filing bankruptcy. In case you have lien on property, the creditors may persuade you even after discharging your debts. You can effortlessly put an end to creditors’ call and financial hardship when you file bankruptcy.
1.) Protection of assets as well as income
In certain situation, you can manage to protect a debtor’s property from unsecured lenders. But you can protect your property if you did not take lien on property used as collateral.
You can manage to protect your property if you file for exemptions in bankruptcy. Therefore, you can manage to protect your property if you file for protection under the state law execution processes.
The bankruptcy court forbids the creditors from garnishing the filer’s account or wages after filing petition with the court. Therefore, you can manage to protect your job if your employer is not in favor of multiple wage garnishments.
3.) Automatic stay
When you file bankruptcy, the court places automatic stay. It prevents the creditors from any collection activities and allows the legal process to continue in a timely manner.
This means you can avoid collection calls from the creditors when you file petition with the bankruptcy court. If the creditors violate the court orders, then the creditors can be penalized.
4.) Modify or eliminate secured debts
When you file petition with the bankruptcy court, you can have different ways to deal with secured creditors. You can manage to eliminate judgment liens against your home in bankruptcy. When you file under Chapter 13 bankruptcy, you can manage to reorganize the payment plan.
Therefore, you can effortlessly manage to pay off your debts. You can consider the above mentioned benefits of filing bankruptcy as it can help you take the right decision for you.
This is a guest post by Lucy Collins
Lucy is a professional writer, blogger and editor. She likes to write on Finance, debt management and law. Follow her on Twitter @lucycollins84
- Vote on HN
Grab your free subscription and receive my
"Top 5 Tips On How To Make Yourself A Better Person"No-Spam Guarantee