What can Bankruptcy Do For Me?

It is a misconception that bankruptcy ruins your reputation. It might hurt your chances of getting loans and credit in the short term, but that is all. It is basically a personal decision that enables you to restructure and renew your financial situation for the sake of yourself and your family. In simple terms, bankruptcy is like flicking the switch of your debt history off and then back on. It resets your consumer debts such as those associated with your credit card, vehicle, mortgage, etc.

It is widely (and wrongly) believed that bankruptcy leads to the loss of all assets. However, contrary to this, many assets that you own are protected by bankruptcy laws within the bankruptcy court. The assets include furnishings, retirement saving accounts, basic homes and vehicles (inexpensive ones). The specifics vary state to state and at the federal level, so you should check the laws in your state or area to have better information about what is protected. On the federal level, retirement accounts are protected to a limit of $1,171,650. Other things that are protected include your 401(k) account, pension, disability, IRA and Social Security benefits. This is the reason why many lawyers recommend against borrowing from a protected account for the repayment of debt.

Most importantly, whether you’re facing foreclosure on your home or you are being harassed by creditors. We are confident that our attempt to restart you with a new financial slate, will give you the tools you need to retake control of your financial life.

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A few of the protections and other benefits bankruptcy offers, include:

  • A chance to start over: Bankruptcy can be the tool you need to restart your financial life. By discharging your unsecured debts through Chapter 7 or paying them down over time through Chapter 13, you will have the opportunity to begin again with a clean slate.
  • Preventing foreclosure: If you are struggling to keep up with your mortgage, Chapter 13 bankruptcy will allow you to restructure your debt into more manageable payments. Even if you have fallen far behind, we can explore options for avoiding foreclosure and keep your family where it belongs — in the family home.
  • Stopping creditor harassment: Constant calls and past-due notices from creditors are one of the most common complaints we hear from clients. Bankruptcy’s automatic stay provides a shield against creditor harassment. Once you file your bankruptcy petition, creditors are required to leave you alone. If they violate the automatic stay, we can help you hold them accountable.
  • You get to keep your possessions: Instead of draining your retirement or selling off heirlooms, filing for bankruptcy can help you hold on to the assets that are most important. Yes, Chapter 7 bankruptcy is often called liquidation for a reason, but there are numerous bankruptcy exemptions, and in most cases, debtors are able to retain their home, their cars and other possessions. As your lawyers, we can explain all the exemptions that apply to your situation.
  • Not just debt relief, stress relief: Carrying a heavy debt burden is one of the most difficult things a person can endure. It puts stress on your marriage as well as your professional life. By filing for bankruptcy you can get the breathing room you need to reassess your finances and shake off your debts and the stress that comes with them.