What are the benefits of bankruptcy

Benefits of filing a bankruptcy

Bankruptcy is a legal process that’s can be an good option  if you are struggling with repaying debt. Filing for Bankruptcy provides protection from abusive debt collection calls and actions. Creditors are not allowed to contact you or proceed in attempts to collect a debt once the bankruptcy process is initiated. If you are struggling with unmanageable debt, bankruptcy can be a solution. A drawback can be that Bankruptcy will affect your credit in the short term but it can rehabilitate your credit in the long term as your debts have been eliminated. 

Bankruptcy can normally discharge most credit cards, medical bills, unsecured loans and lending, judgments and court actions, repayment plans, monthly fees and other unsecured debt. In addition the bankruptcy process can be used discharge other forms of debt while allowing you to continue to pay and keep current on your rent, mortgage, vehicle, utilities and any memberships. Consult an attorney to learn what you are potentially eligible to discharge.

Benefits of bankruptcy

  • Your unsecured debts will be eliminated, giving you a fresh start
  • Your creditors can’t take any further action against you to recover your debt
  • Creditors must also stop demanding payment, charging interest and adding other charges
  • You won’t receive any further contact from your creditors
  • You can keep your retain your property assets, bank accounts and paycheck
  • You will be able to afford to keep current on your mortgage, vehicles, and monthly bills

When should you file for Chapter 7 bankruptcy?

Chapter 7 Bankruptcy is often used to dismiss unsecured debt such as credit card debt, medical debt, rental liability, unfulfilled contracts, personal loans, payday loans, and legal actions.  Once you have successfully completed Bankruptcy, your unsecured creditors can no longer try to collect on the debts. To determine your eligibility for Chapter 7 Bankruptcy, you must not have had a prior successful Chapter 7 Bankruptcy in the last 8 years and must meet income and debt criteria. During Chapter 7 Bankruptcy you continue to pay your secured debt and monthly bills while eliminating unsecured debts. For example you should continue pay the monthly payments on your home, vehicle, cell phone, rent and utilities but stop payments on unsecured loans, credit cards or medical bills.

There are several ways that our bankruptcy lawyers can help. First, we examine your debts to see if a Chapter 7 filing is in your best interests and discuss other alternatives besides Bankruptcy. Then we discuss your income and debts and the benefit and drawbacks to filing Bankruptcy. For more information on Bankruptcy contact us at (702) 776-7179 or schedule a consultation online at https://jacovinolaw.com/schedule-a-consultation/.