What Are the Benefits of Bankruptcy?

Declaring bankruptcy can be a very complicated process, but for some it is worth the hassle due to the various benefits it brings.

Discharging Debts

Bankruptcy can help in discharging most of unsecured debt such as credit card, personal loans, etc. These creditors would be barred by law to take any legal action against you as soon as you declare bankruptcy.

Stopping Creditor Harassment

The continuous pestering being faced by you as the debtor would eventually stop as the creditor would then be barred from contacting you directly. After you declare bankruptcy, it is only through lawyers could they get in touch with you.

Keeping Property

The fear of losing your house, car or any other personal asset would go away when you file for bankruptcy. Assets which fall in the category of everyday needs are exempt from liquidation. Therefore, even though some of your property may be evaluated and seized, family home and vehicle valued under a certain amount will still stay in your possession.

Stopping Foreclosure

As soon as you file for bankruptcy, the foreclosure proceedings will come to a hold and no legal action could be taken against you. The court will have an assessment of your finances and you will be able to work out a solution for the payments with the creditors.

Fresh Start

Bankruptcy could pave way for a fresh start – both financially and psychologically – as the excessive debts would be discharged and the law protects all your rights so that no creditor can pressurize you to pay off the outstanding liabilities. Still having reasonable amount of property in your ownership, you can engage in a healthy future planning to start over in a better way.