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Benefits of Bankruptcy

While bankruptcy is often viewed as a means of last resort, it is important not to overlook the fact that filing for bankruptcy offers a number of important benefits. From protecting your home to providing the opportunity to start rebuilding your credit, there are a number of considerations that can make bankruptcy a strong option under the right set of circumstances.

Some of the Key Benefits of Bankruptcy Include:

If you are unable to pay your monthly mortgage bill on time, filing for bankruptcy under Chapter 13 can help you save your home. With Chapter 13 bankruptcy, you can pay off mortgage arrearages so that you can avoid foreclosure.

The same rules that apply to your home also apply to your car. While a Chapter 7 bankruptcy may not protect you against having your car repossessed, if you can restructure your payment obligations under Chapter 13, you can save your home and your car.

When you file for bankruptcy, this triggers what is known as an “automatic stay.” With an automatic stay in place, your creditors cannot take legal action against you (such as foreclosing on your home or repossessing your personal property). While you will ultimately need to go through the Chapter 7 liquidation or Chapter 13 reorganization process, this automatic stay can provide immediate relief if you are facing drastic consequences of non-payment.

While a bankruptcy discharge will stay on your credit report for either seven (Chapter 13) or ten (Chapter 7) years, if you cannot pay your bills, filing for bankruptcy is the first step toward rebuilding your credit. The consequences of not filing for bankruptcy can be far worse, and there are several steps you can take after your bankruptcy to begin rebuilding your credit immediately.

Once the bankruptcy process is complete, certain debts will be discharged. Credit card bills, medical bills, car loans and other personal debts can all be erased through the bankruptcy process. Alimony, child support and student loans are not eligible for discharge in bankruptcy.

Whether you are able to have all of your debts discharged through a Chapter 7 bankruptcy or you are able to make all of your restructured debt payments under Chapter 13, filing for bankruptcy can help you regain your financial stability. Once you complete the requisite debt counseling and rebuild your credit, you will be able to start fresh without your old financial baggage.

If you can’t pay your bills and you don’t file for bankruptcy, you could lose your home and your car, your creditors could repossess other items you bought on credit and you could have your bank account levied – leaving you with even less ability to manage your finances. But, if you file for bankruptcy, you can stay in control. You can decide whether to file under Chapter 7 or Chapter 13, and you can use the bankruptcy process to protect your assets to the greatest extent possible.

Speak With Bankruptcy Attorney Rebecca Moughon

If you are thinking about filing for New Leaf Bankruptcy and would like help weighing your options, contact the Law Office of Rebecca Moughon in The Woodlands, TX for a free and confidential consultation. To schedule an appointment at your convenience, please call (832) 653-9371 or send us a message online today.

Get Started With A Free, No-obligation Consultation

For more information about filing for bankruptcy, please contact us to arrange a free, no-obligation consultation with Attorney Rebecca Moughon.

To schedule an appointment at your convenience, please call (832) 653-9371 or request an appointment online today.

Book an appointment with Rebecca Moughon using Setmore