- Are There Any Benefits of Filing For Bankruptcy?
- March 6, 2017
- Law Firm: OKTANYAN DER-GRIGORIAN LAW GROUP - Glendale Office
- Bankruptcy aids individuals or businesses that are in large debt and are unable to pay it, to at least have a turn of events. They are able to resurface and start building their credit. It provides a considerable relief for those buried by unsustainable level of debt. Take a look at its comprehensive benefits.
Triggers Automatic stay
Bankruptcy triggers automatic stay, thus preventing creditors from taking action to collect their debts. It also prevents creditors from repossessing property like cars.
Filing for bankruptcy with a reputable Phoenix bankruptcy lawyer will save you from the much dreaded phone calls, letters and nasty emails reminding you to pay. At least you will have a peace of mind to deal with other sectors of life.
Chances of Improvement
Bankruptcy filing can remain on record for more than seven years. This presents a possibility of discharging some debts and therefore gives some debtors a chance to improve their credit.
A good tool when facing foreclosure
Bankruptcy can be a good deal. It can make you keep your house. A court can issue a relief that grants one an automatic stay. This means that all creditors will cease collection attempts. This is a good measure as bit can postpone foreclosure.
Freeze your interest payments
Of course with increase duration of loan default means increased interest. With bankruptcy declaration, it means there will be no interest added to your debt. As a debtor you will bear no responsibility of paying this interest.
No more legal suits against you
Filing for bankruptcy will put a stop to any legal action and claim from your creditors. This will give you an opportunity to save monies that could otherwise be wasted on court fines and other related charges like wage garnishment.
Get rid of your Student loan debt
Bankruptcy will get rid of your student loan debt and put an injunction on aggressive debt collection by your lenders. This in itself provides a chance for start of new life by the student and concentration at the work place.