The number of bankruptcies that have been filed in recent years has far exceeded those numbers that existed in prior generations. This should come as no surprise considering the unusually difficult financial situation most people currently find themselves. Sadly, there comes a certain stigma associated with filing bankruptcy but should there be? The answer to this is no.
When you file for bankruptcy, you are taking a legal and ethical approach to dealing with your difficult debt situation. Often, filing for bankruptcy opens the door to being able to deal with a serious debt issue in the most effective manner possible.
There are those that do not see the advantages to filing for bankruptcy, so they do not look towards bankruptcy as a viable option. For those curious regarding the value of filing for bankruptcy, here is a brief look at the prime advantages you can gain from such a filing:
There are different options
You have several options of bankruptcy available to you. Most will look towards Chapter 7 bankruptcy which is liquidation bankruptcy and others will look towards Chapter 13 bankruptcy which is a “wage earners restructuring” bankruptcy. Either way, you need not feel locked into a particular corner as you have options available to you.
Of course, the fact that the court is the intermediary with the full weight of the law at its ability is a sincere plus. You need not be under the stress of trying to figure out your next steps on your own. Your representatives and the courts will handle such matters on your behalf.
Cessation of collection
You can gain a temporary stay of the collection actions against you. No one likes to deal with harassing phone calls or other such attempts to collect a debt. When you file for bankruptcy, the court can order a cessation of collections in order to effectively restructure a repayment plan.
This brings us to the next advantage there is to file for bankruptcy. What would this advantage be? The court has the ability to discharge you from certain unsecured debts. This means you would be freed from a portion of the debt you owe.
The manner in which you would be required to pay back your debt will be restructured in such a way that it is most beneficial to you. The courts will likely not force a restructured agreement that makes it impossible for you to stay afloat financially. Again, filing bankruptcy is designed for your protection. It will not employ an approach that undermines your ability to maintain your fiscal health.
You can potentially become completely debt free when you exit out of bankruptcy. Needless to say, this can be considered among the most beneficial aspects of all. When you are debt free, you can start over with a new fiscal lease on life. From that point onwards, you can avoid making the common mistakes that got you into the difficult fiscal position you currently find yourself. You can contact Bolinske Law in Minnesota and seek help from reliable attorneys.