What Are the Advantages of Filing for Bankruptcy? Part 1
The advantages of filing for bankruptcy are many. There are some major benefits of doing so, such as the fact that bankruptcy provides you with a fresh start. There are also some hidden advantages of bankruptcy we’ll discuss on another occasion.
However, in order to reap all the benefits of successfully claiming bankruptcy, you also need to thoroughly prepare for the bankruptcy filing process . Now, though, let’s take a closer look into what good can come out of bankruptcy, especially if you consult an experienced Escondido bankruptcy lawyer.
Why should I file for bankruptcy?
When it comes to filing for bankruptcy, the first thing you should know, before actually being aware of any of the benefits, is why you should file for bankruptcy. No need to contact the California Department of Justice for this – we’re here to help shed some light on the matter. Here’s what you should look out for:
- The moment you start buying your daily necessities with credit cards, you know it’s time to file for bankruptcy.
- If you’re beginning to pay off the debt on one credit card by using another credit card, you should definitely consider bankruptcy.
- You’ve missed a couple of payments on your interest rates, and due to that, they’ve started rocketing up.
- You’re working two jobs already just to keep up with the debt payment demands.
- Your wages are about to be garnished.
- Stress and depression are dominating your days, and it’s affecting your work and relationships.
- Taking money from your retirement account is something you’re starting to consider. DO NOT DO THIS. In fact don’t do anything until your have had a free consultation with us.
Any of the above-mentioned reasons are enough to make you consider filing for bankruptcy. However, don’t consider bankruptcy only as a last resort. Bankruptcy can be extremely beneficial, as we’re about to see.
What are the major benefits of filing for bankruptcy?
Individuals who are thinking of filing for bankruptcy often view it as a grim concept. However, it doesn’t have to be like that, and it usually isn’t. There are some major advantages when it comes to claiming bankruptcy, so let’s see what they are.
1. Stay against creditors – Immediately upon filing for bankruptcy, the court issues a stay against any debt collecting activities. This means there are no:
- Letters and calls from debt collectors.
- Debt-related lawsuits.
- Wage garnishments.
- Foreclosures on your home mortgage.
- Repossession of property.
2. Debt discharge – Depending on the circumstances of the bankruptcy, you will be able to cancel your responsibility to pay these debts off. Dischargeable debts are those that can be eliminated when filing for bankruptcy.
3. Bankruptcy exemptions – Exempting an asset during the process of claiming bankruptcy means that you no longer have to worry that it’s going to be seized during the bankruptcy process itself.
4. Credit score – Although it does seem a bit Sci-Fi, the fact of the matter is that your credit scores will improve when you to file for bankruptcy.
“Who is the leading Escondido bankruptcy lawyer to help me successfully file for bankruptcy?”
Filing for bankruptcy can be a complicated process, and it is wise of you to consider asking an educated bankruptcy lawyer for help. There are many bankruptcy attorneys out there, but only one choice if you’re looking for the best – Chang & Diamond!
We are a dynamic bankruptcy lawyer duo that will make sure you get as favorable an outcome as possible. So, instead of going to Daley Ranch to clear your head, contact us today and let’s see how we can help.