What are the Benefits of Bankruptcy?
The idea of filing for bankruptcy frequently fills people's minds with dread. There are many
myths that exist about the process, making it seem more of a punishment than anything else. In fact, bankruptcy was designed as a tool to help people who are facing insurmountable financial struggle. The end result of the process is an individual who has eliminated his or her debt and is able to reestablish financial viability.
There are four primary benefits to filing for bankruptcy. They include:
Automatic Stay - Once you file for bankruptcy, your creditors are barred from taking any further collection action against you, including phone calls, letters, lawsuits,
repossessions, or mortgage foreclosures.
- Debt Discharge - Once your bankruptcy is complete, most or all of your debts will be resolved. Even if you have ineligible debts left over, you will likely be in a better position to address them than you were before bankruptcy.
Catching Up On Past Due Payments - If you file for
Chapter 13, you will formulate a creditor payment plan that reorganizes and consolidates your debt. Through this plan, you may be able to pay off back taxes or past due payments on your mortgage.
- Financial Fresh Start - After bankruptcy, your slate will be wiped clean. You will likely be able to apply for limited credit not long after your proceedings have concluded. As your credit rating improves, you will eventually be able to acquire loans for larger items, such as a home or vehicle.
At the Law Offices of Marshall D. Schultz, we are committed to making our clients feel as safe and comfortable as possible while pursuing a resolution to their financial issues. Our experienced staff has helped thousands of individuals successfully file for bankruptcy, giving them the second chance they need to obtain financial health. We are available to answer your questions and file the petition on your behalf, should you decide to proceed. Contact our legal team at one of our office locations in either Detroit or Southfield.