Don’t be afraid to file for bankruptcy! If you find yourself owing debtors more than you can afford and you want to learn more about bankruptcy, contact the bankruptcy lawyers at Craft Law Offices in Greenville, Morehead City, or Rocky Mount, North Carolina. We want to help you figure out your best options for moving forward. Our goal is to make filing bankruptcy an easier process for you so that you can achieve financial security.
There are many myths about why filing for bankruptcy is a bad thing, but we want to challenge those myths. There are many positive advantages when you file for bankruptcy:
- Automatic stay against creditors. Once you file for bankruptcy, the court will automatically issue a stay against any and all debt collection. This doesn’t cancel your debt, but it suspends the collection proceedings until your bankruptcy case is complete. What this means: no more calls or letters from debt collectors, no more lawsuits, no more wage garnishments, no home mortgage foreclosures, and so on. However, it is important to note that an automatic stay does not have the power to stop criminal proceedings, government tax audits, child support or alimony, establishment of paternity, or co-debtors/co-signers.
- Dischargeable debts. You might be able to cancel your responsibility to repay debts like credit card debt, medical and utility bills, and personal loans.
- Bankruptcy exemptions may allow you to maintain ownership of your property after bankruptcy. If you can exempt an asset, you won’t have to worry about that asset being seized during your bankruptcy case. In both Chapter 7 and 13 bankruptcies, these exemptions play an important role. Some exemptions project up to a certain dollar amount of an asset, while others may cover the entire value of an asset. Some exemptions can apply to certain types of assets, while others can be applied toward any property you own.
- Credit score. So many people believe that filing for bankruptcy will tank your credit score or that a bankruptcy filing remains on your record for up to 10 years. But many debtors actually start improving their credit scores after they file for bankruptcy. Once a person’s dischargeable debts are cancelled, they are able to move forward with a clean slate and begin rebuilding their credit.
There are many positive things that can come from filing for bankruptcy, but there are some things to be warned about too. Filing for bankruptcy at the wrong time can make your financial situation even worse. You should be careful about filing too early; sometimes a person loses their property they otherwise would have been able to keep. Make sure to file the right type of bankruptcy too.
In many cases, filing for bankruptcy is a person’s best choice. Even so, filing for bankruptcy does have real, lasting effects on a person’s finances, so make sure to consider these effects before you file. And always hire a credible bankruptcy attorney!
Bankruptcy can be confusing, and it can be especially frustrating if you’ve decided to take steps to file bankruptcy. But at Craft Law Offices, our bankruptcy lawyers are ready to help. Contact us today to get started!