Bankruptcy has gotten a bad rap over the last several decades, with many people thinking that the process will leave you with nothing to start over with and that it will haunt your financial records for the rest of your life. Rest assured that most, if not all, of these concerns are blown out of proportion. Contrary to some beliefs, personal bankruptcy is a very real way to secure debt relief and obtain the fresh financial start that you need.
But it’s understandable to be hesitant about the process. Bankruptcy is very formal, and the finality of it might leave you on edge. And if you’ve never been through the bankruptcy process, then the uncertainty of it all can be nerve-wracking.
We hope to alleviate some of your fears in this post by looking at the many benefits of personal bankruptcy. Hopefully becoming aware of them will motivate you to take the action necessary to secure the outcome that you want.
There are a lot of benefits to pursuing personal bankruptcy. Let’s look at them here so that you understand what you can get out of the process:
- Debt discharge: This is the main reason why many people seek bankruptcy. In many instances, bankruptcy petitioners can eliminate debt that has been crushing them for years. What that discharge will look like depends on the type of bankruptcy you pursue, though, and there are certain debts that will be difficult to get rid of through the process. However, a successful bankruptcy petition truly can give you a new lease on life.
- Stop creditor harassment: Once you file your bankruptcy petition, creditors will be prevented from trying to collect debt from you. This means that harassing phone calls and letters will stop, lest those debt collectors want to face legal penalties.
- Halt debt-related lawsuits: Bankruptcy places an automatic stay on debt-related proceedings. This means that any legal action against you will be temporarily halted until your bankruptcy petition resolves. In many instances, the debt that’s subject to those proceedings ends up being discharged.
- Stop foreclosure: Many people who are struggling with debt face the very real possibility of home foreclosure. When that happens, you could lose everything that you’ve worked hard to gain. By filing a bankruptcy petition, though, you can stop foreclosure proceedings. This could give you time to get current on your mortgage or develop an alternative plan.
- Stop repossession: The same can be said of personal property that’s subject to repossession. Your bankruptcy petition will prevent your car from being repossessed, which allows you to continue to get your job and care for your family while your bankruptcy case plays out.
- Stop wage garnishment: Some debt collectors can take money directly out of your paycheck, especially if there’s been a legal judgment against you. A bankruptcy case will eliminate this wage garnishment, giving you some breathing room as you navigate your bankruptcy and your plan for the future.
Are you ready to pursue personal bankruptcy?
Deciding to pursue bankruptcy is a huge step. Yet, it can provide you with the fresh financial start that you’re seeking. If you want to wipe your slate clean, or at least as clean as possible, then now is the time to learn all you can about personal bankruptcy and what it can do for you under your set of circumstances. Hopefully then you can develop a legal strategy that puts you on the path to the successful future that you envision for yourself.