Benefits of Bankruptcy
If you are struggling with personal debt and are unsure if you have any options remaining, bankruptcy might be the right move for you. Bankruptcy is no longer the stigmatized scarlet letter that it used to be, if it ever was. Each year, over 750,000 individuals drowning in consumer debt across the United States file for bankruptcy, seeking and obtaining financial relief. Between 2006 and 2017, nearly 13 million Americans filed nonbusiness bankruptcies. 8.6 million people filed for Chapter 7 bankruptcy, and around 4.1 million filed for Chapter 13 bankruptcy. While bankruptcy is, of course, a serious matter, there are numerous advantages to bankruptcy that allow individual debtors the chance to start again and find financial freedom.
Below, the seasoned Ventura debt relief and bankruptcy attorneys at Rounds & Sutter identify some of the main benefits of bankruptcy available to eligible debtors. If you are struggling with consumer debt and considering bankruptcy, there is no time like the present to call a professional, qualified, and compassionate California debt relief lawyer for case evaluation and assistance.
Prevent Repossession, Foreclosure, and Utility Shutoffs
When you file for bankruptcy under Chapter 7 or Chapter 13, the bankruptcy court will issue an automatic stay that puts a stop to any and all collection efforts. This includes mortgage foreclosure, auto repossession, and other property repossession. You can take the additional time and relief from debt collection to get current with your mortgage, utility payments, and other remaining debts. You can also fold your car payments into your repayment plan, and you can protect other property from repossession. You get the second chance you need to make your payments current and completely eliminate covered debts.
Clear Your Debt
Chapter 7 bankruptcy completely wipes clean and discharges eligible unsecured debts. You will find yourself either without debt entirely or with a much more manageable set of loans left and significantly more disposable income to catch up on any overdue payments. Likewise, at the end of your Chapter 13 repayment period, any remaining debt that is covered will be discharged.
Stop Wage Garnishment and Other Aggressive Collection Efforts
When you file for bankruptcy, collection efforts must cease. Eligible debt will be discharged (Chapter 7) or reorganized and restructured and included in a repayment plan (Chapter 11 and Chapter 13). Wage garnishments and bank account levies will be stopped, and aggressive debt collectors will no longer be able to call or send you collection letters. Covered debt collectors will stop their activities and give you the peace of mind you deserve.
Debtors who go through personal bankruptcy are required to go through credit counseling as part of the process. You will learn more about your finances, about budgeting and investing, and how to build and retain strong credit in the future.
Fix Your Credit
Filing for bankruptcy will negatively affect your credit for a period. However, many debtors who turn to bankruptcy have already been languishing with low credit scores for some time. Filing for bankruptcy starts you on the path of rebuilding your credit. You can start improving your credit from day one after obtaining your discharge or starting your repayment period. Some creditors find their score actually improves after filing, as they benefit from a vastly better debt-to-income ratio. After seven years or so, the bankruptcy disappears from your credit report entirely.
Call Rounds & Sutter to Explore Your Options and Pursue a Brighter Financial Future
There is no reason to be ashamed about seeking bankruptcy protection when you need it. At Rounds & Sutter, we understand that, like the millions of other Americans dealing with crippling debt every year, sometimes you need help. We welcome the opportunity to provide that relief. Call Rounds & Sutter at our offices in Ventura, Santa Barbara, and Westlake Village. We will take the time to listen to your situation and help you decide the best course of action to protect your finances, your family, and your future.