Benefits of Bankruptcy

How Can Chapter 7 or 13 Bankruptcy Help You?

In the U.S., consumer bankruptcy tends to have a very negative stigma, even in these tough economic times. However, much of that stigma stems from people not fully understanding Chapter 7 or Chapter 13 bankruptcy or having an awareness of the true benefits of bankruptcy. If you are filing for bankruptcy or have plans to initiate the bankruptcy process in Murrieta, you should know that there are several benefits.

Some of these positive incentives include:

• Being able to discharge your debts: When you file for Chapter 7 bankruptcy, your debts are discharged (eliminated) and you get to start over with a clean slate.
• If your wages have been garnished by creditors, filing for bankruptcy will put an end to wage garnishment. This is important for people who want to regain financial freedom.
• Ends collection attempts: Once you have filed for bankruptcy, your creditors will be informed that a bankruptcy petition has been filed in your name and will no longer be able to contact you to collect debt.
• May prevent foreclosure: More and more people are choosing to file for consumer bankruptcy to stop foreclosure and keep their homes. Additionally, filing for bankruptcy may allow individuals to keep other assets and property, like cars and savings.
• Gives you a fresh start: People who file for bankruptcy have a second chance to rebuild their credit and, essentially, rebuild their lives.

If you would like to learn more about the benefits of bankruptcy or to find out if filing for bankruptcy is right for you, contact a Murrieta bankruptcy lawyer from our firm today!