Benefits of Bankruptcy
Benefits of Bankruptcy in Skokie, IL
Bankruptcy seems like such a scary notion to many. It is a word that is often associated with losing property, having assets seized, and having to sell everything that you own to pay off your creditors. While there is a string of truth to these, the plus side is that bankruptcy isn’t all gloom and doom. Bankruptcy doesn’t always mean losing it all, and understanding that there is a silver lining is the first step to recovery.
Unbeknownst to many, there are benefits of bankruptcy. While these two aren’t words that you’d normally say in the same sentence, bankruptcy benefits exist in many ways, namely:
- Giving a fresh start
- Stopping creditor harassment
- Offering peace of mind from financial problems
To better understand the benefits of bankruptcy, it is advisable to get in touch with a bankruptcy attorney from Skokie, IL, law firm Cutler & Associates. For every daunting financial obstacle you’ll face, you must have only the best by your side. An attorney from the Skokie, IL, law office is equipped with knowledge and experience to help you get back on your feet and use bankruptcy to your advantage. Schedule an appointment right now.
What Are the Benefits of Bankruptcy?
Filing for bankruptcy is an exacting and emotional time for most people since it involves letting go of the property and relinquishing certain comforts in life. However, having a positive mindset during this trying time is essential. Before you can turn your life around and start to look on the brighter side, it is crucial to understand the benefits of bankruptcy.
Basic Bankruptcy Benefits
The most basic benefits of bankruptcy involve halting specific procedures that would otherwise be pressuring on your end. Consulting with a bankruptcy attorney helps you better educate yourself on how bankruptcy can benefit you. However, for the sake of better understanding, bankruptcy, in general, stops the following:
- Collection calls and harassment
- Creditor lawsuits
- Wage garnishment
- Repossession of property
Apart from these, bankruptcy will also help with:
- Eliminating debts in Chapter 7 bankruptcy
- Protects your property from being sold
- Puts an end to debt
Should You File for Bankruptcy?
The answer to this question varies from person to person. That is why it is best to consult a bankruptcy attorney for legal advice on bankruptcy law in Skokie, IL. However, certain general conditions apply if you are questioning whether or not bankruptcy is for you, including:
- Its impact on your ability to access credit, lenders, or low-interest rates in the future
- The impression it will leave on your credit report
- Whether you might lose assets
- The difference in time and expense associated with bankruptcy
- Your eligibility for bankruptcy
- Retention of valuable assets from repossessions
Specifics matter most when deciding whether bankruptcy is beneficial for your case. In some situations, bankruptcies may:
- Fail to discharge credit card debts
- Affect your pension plans
- Create financial issues
- Stop foreclosure
- Invasion of privacy with the bankruptcy court collaborating with a bankruptcy trustee
These concerns affect the debt relief they provide, but it is better than staying drowning in debt. Regardless, if you are undecided about which course to take, it is best to get in touch with a Skokie, IL bankruptcy attorney who can walk you through the legal process of bankruptcy.
How are Bankruptcy Problems Solved?
After a bankruptcy, there might be a need to correct inaccurate reports from previous creditors, which involves a process with the credit bureau. This entails contacting former creditors to verify the satisfaction of debts. Even as these issues are resolved, those who have completed bankruptcy can expect to still:
- Pay higher credit rates
- Have higher down payments
- Produce co-signer when attempting to acquire new credit
How Does Bankruptcy Give You a New Start?
Filing Chapter 7 bankruptcy will help discharge debt, while Chapter 13 bankruptcy helps sort out your debts through a repayment plan. The better bankruptcy depends on your given situation. Regardless, these will both help you advance in your situation. Upon discharging the debt, you can start having more control over your finances and taking the first step toward a better start.
How Does Bankruptcy Stop Creditor Harassment?
One of the main benefits of bankruptcy includes stopping creditor harassment. How does this work? When you file for bankruptcy, it puts you on automatic stay, which means that collections, repossessions, foreclosure, wage garnishment, and creditor harassment are on halt.
What Happens After You’ve Filed for a Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is the bankruptcy type that most persons file due to its easy eligibility and minimal requirements. However, if you decide to file for it, you should also be aware of certain downsides to it. Many debt types cannot be discharged under this type of bankruptcy, including the following:
- Student loans funded by the government
- Certain tax debts
- Child support
- Federal tax liens
- Spousal support or alimony
- Personal injury or wrongful death debts (automobile accidents)
- Fines and penalties
- Tax-advantaged retirement plans
- Housing fees
If you wish to better understand what are the benefits of bankruptcy, and the limitations of Chapter 7 bankruptcies, get in touch with a Skokie, IL bankruptcy attorney from Cutler and Associates. We are a reputable law firm that can provide personalized solutions to your unique situation.
Schedule an Appointment with a Skokie, IL Bankruptcy Attorney!
Bankruptcy is definitely a challenging time for many since it entails financial losses, loss of particular properties, repossession, wage garnishments, and many other related concepts. However, bankruptcy doesn’t always mean gloom and doom. Bankruptcy can provide you with a fresh start since there are plenty of benefits that bankruptcy brings forth to those who file for it to get back on their feet, such as helping put a stop to creditor harassment via automatic stay.
If all these concepts seem like a lot to you, know that your wisest option is to get in touch with a bankruptcy attorney from Cutler and Associates, a Skokie, IL law firm. The attorney from the firm can help guide you through the complicated process involved in bankruptcy. Schedule an appointment with a seasoned Skokie, IL bankruptcy attorney right now.