When you’re at a point in your financial life that debt is consuming you, you are faced with some difficult decisions, including whether or not you should file for bankruptcy. It’s not easy to reach that decision, but it may help if you knew some of the benefits of bankruptcy.
Collection Agency Protection
When you’re faced with overwhelming debt, credit agencies and debt collectors call on a daily basis. When you file for bankruptcy, there’s an allotted amount of time where a creditor can’t make contact with you. If they do contact you, they face penalties. So, filing for bankruptcy provides a relief from the constant harassment of credit agencies.
Unsecured Debt Dismissal
When you file for bankruptcy, you’ll gain a fresh financial start by having your unsecured debt dismissed. This includes unsecured loans and credit card bills.
You Lose Your Credit Cards
Yes, this is an advantage of filing for bankruptcy. Your credit cards are probably what got you into trouble in the first place. Your bankruptcy lawyer may be able to approval for you to keep one credit card, but learning how to balance your budget without credit cards is certainly a blessing in disguise.
Easier to Explain to Future Lender
It's much easier to explain to a future lender your bankruptcy than it is to explain your repossession, foreclosure and credit card default. Many times, if bankruptcy is the result of extenuating circumstances, you can write a bankruptcy letter that allows you to explain your reasons for filing.
If you're considering filing for bankruptcy and you want more information on the advantages of starting fresh, contact us.