Business / Family / Lifestyle

3 Reasons Why Filing for Bankruptcy May Be a Good Option

Filing for Bankruptcy

Today we want to share 3 reason why filing for bankruptcy may be a good option. Filing for bankruptcy can be extremely embarrassing. When you file for bankruptcy others may think you have been reckless with your finances. All of this can be difficult to deal with.

It may be that you have not been managing your finances well and this is why you have to file for bankruptcy. However, there may be other reasons as well. Whatever your reason for filing for bankruptcy know that you can get through it and financially recover. Here is a look at what filing for bankruptcy can do for you. In any event, it is important that you talk to a properly qualified insolvency practitioner Swansea who can advise you on the best steps for your financial future.

Stop Creditors from Harassing You

Once you file a bankruptcy claim in court an automatic stay is executed. This prevents all creditors from calling and harassing you.

Once an automatic stay is granted you should let your creditors know that it is in place. After that, they are not allowed to call you to ask for payments or file a lawsuit against you.

Stop Evictions

An eviction that is still in progress will immediately stop when you file for bankruptcy. However, this halt is often temporary. A bankruptcy filing can stop foreclosure and repossession of your house. The type of bankruptcy that you file can affect what happens when the stay is lifted. 

If you file Chapter 7 bankruptcy cannot help you to keep the property. If you cannot pay off the money that you currently owe then the house will be foreclosed once the stay is lifted.

If you file for Chapter 13 bankruptcy you will be allowed to see if you can catch up on the payments so that you can keep the home as an asset. 

Get Rid of Credit Card Debt 

Filing for bankruptcy can effectively eliminate your credit card debt. However, this is not the only debt that can be eliminated by bankruptcy.

If you have medical bills that you cannot afford to pay, utility bills, and personal loans all of this can be wiped out by filing for bankruptcy.

Bankruptcy can also help you to get rid of a mortgage or a car loan that you can no longer pay. You will usually have to give up the house or the car that you cannot pay for.

There are many twists and turns that can come up when you file for bankruptcy. Things are not always straightforward. It is important that you hire a good attorney from a reputable law firm such as the Spodek Law Group, to represent you.

Get Your Life Back On Track

While bankruptcy is never a pleasant option it is often a good way to get yourself on the road to financial recovery and reduce stress. If you can see no possible way in which you can pay off your debts and still support your basic needs the most responsible thing to do for yourself and your family maybe to file for bankruptcy.

Remember that when you are filing for bankruptcy there are several legalities that may come into play. This means that you will need to hire a good lawyer to represent you.

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