It is not uncommon to hear people speak negatively about individuals who file for Chapter 7 bankruptcy or the process itself. However, those who have filed often speak of the benefits of bankruptcy. They tell how it has helped to change their lives for the better. Everyone has their own opinion of the process, but the fact is that most people turn to Chapter 7 bankruptcy when they feel as if they are out of options and they want to get back on sound financial ground.
There are several advantages or benefits of bankruptcy. Before you file, it is best to speak with a knowledgeable bankruptcy attorney. The attorney can advise you on how bankruptcy may or may not be the best choice for your financial situation.
Financially and Emotionally Free
You will often hear about the financial freedom individuals feel when their debts are discharged through bankruptcy. But, there is also an element of emotional freedom as well. These individuals are no longer stressed over dealing with creditors or trying to pay bills when there is not enough money. These individuals are often excited about their new financial beginning.
One of the Benefits of Bankruptcy Is That You Will Qualify For New Loans
One of the other benefits of bankruptcy is that you will qualify for loans and other financing. Although this financing may have a higher interest rate, you will have the opportunity to begin rebuilding your credit.
You Will Learn Money Management
Credit counseling is a required part of the bankruptcy filing process. The counseling will take into account your income and the amount of debt you owe and see if it is feasible for you to file for bankruptcy. Learning how to budget properly will help you manage your money better after your bankruptcy has been discharged.
Stops Foreclosure Process
The courts stop the foreclosure process when you file for bankruptcy. The lender cannot foreclose on your home or property as long as your case is going through the court system. The courts can delay the foreclosure by many months, and you will have the opportunity to catch up on any late payments.
These are just some of the benefits of bankruptcy. Although bankruptcy courts discharge many debts, the courts consider some debts non-dischargeable. Consult with an experienced bankruptcy attorney who can help you understand your options and help you with your filing.
If you are overwhelmed by debt and considering bankruptcy, schedule a free consultation with Douglas Jacobson Law Firm.