Advantages of Filing Bankruptcy
The financial freedom from relieving debt and stripping the constant worry about finances is a large enough gain to consider bankruptcy. At Parker & DuFresne, we are experts in protecting assets and strategic debt consolidation. While bankruptcy is not the right answer for everyone, many clients share with us that it was the best decision and one that they should have made sooner. For both businesses and individuals, filing bankruptcy is a tool that offers the following advantages.
- Automatic Stay
As soon as you file for bankruptcy, an automatic stay goes into effect. This halts any collection proceedings against you and gives you immediate relief from creditors. Creditors must cease collection until your bankruptcy case is settled. If you have been talking with creditors and trying to negotiate payment options or delay payments do, this is a huge relief. For example, they may not call you, send letters, sue you or try to repossess your car. The automatic stay protects you from certain actions from creditors including:
- Beginning or continuing judicial proceedings
- Any actions to obtain your property
- Creating or enforcing a lien against your property
- Set-off of indebtedness owed to you before the bankruptcy filing
Debt relief is the most obvious advantage of filing bankruptcy. It gives you the opportunity to start with a clean financial slate. Under Chapter 7 your assets are sold to repay your creditors, and under Chapter 13 you establish a repayment plan. When any type of bankruptcy case is concluded, many or all of your debts will be discharged.
There are exemptions for certain assets under state and federal laws when filing for bankruptcy. Under these exemptions, you are permitted to keep certain assets and not have them sold to repay your creditors. These assets often include your primary residence, clothing, vehicle and appliances.
Under bankruptcy law, you are required to undergo credit counseling. This is an excellent opportunity to reflect on past habits and see what went wrong. It’s a good chance to learn how to better manage your finances and make wiser choices when it comes to credit.
Once your bankruptcy case is settled, you have the chance to begin rebuilding your credit. It gives you the chance to begin living with financial responsibility. It can be difficult to get credit right away, but it’s not as impossible as you might think. One way to begin rebuilding credit is by opening a secured credit line and making timely payments each month. After 7 years, your bankruptcy should no longer appear on your credit rating, giving you a truly clean slate.
There are costs involved when filing for a Chapter 7 or Chapter 13 bankruptcy. Attorney fees can vary by law firm however; filing costs, a credit report and required credit counseling costs are all the same depending on whether someone files as an individual or jointly. At Parker & DuFresne we offer a *No Money Down option that allows you to file fast and pay our fees over time or options that can save money when fees are paid in full. *With both options court costs associated with a Chapter 7 or Chapter 13 are paid when we file.
Filing for bankruptcy is a big decision that requires careful consideration and legal guidance. For some, it’s a clear decision. For others, there may be a better solution available. By carefully considering all of the pros and cons of filing bankruptcy, it will be easier to determine if it’s the right choice for your personal situation. The highly skilled bankruptcy lawyers at Parker & DuFresne have the knowledge and experience to help you with the bankruptcy process. We can help you review your financial situation and find the best path for you to reach financial stability. Call us today at 904-733-7766, or complete the online form for more information on bankruptcy and debt relief.