Although the word “bankruptcy” generally has a negative connotation, there are some advantages to filing for bankruptcy when the situation calls for it. When someone has more debt than he or she is able to manage, filing for bankruptcy can be a proactive way to begin anew. Overwhelming debt can often mean that payments are not being made on time, jeopardizing the debtor’s credit score and creating even more stress with constant calls and letters from creditors. The debtor may be threatened with foreclosure on a home, and these proceedings may actually begin. Filing for bankruptcy can put a stop to all of this, giving the person in debt a chance to take a breath and figure out what can be done to deal with the situation constructively.
Stopping the Creditors
One of the best things about filing for bankruptcy is that it puts an immediate stop to the chaos that often goes with being late with payments and being in debt. The actual filing of bankruptcy triggers an automatic stay, which means that creditors can take no further action to collect their debts, and the calls and letters must stop. They also cannot foreclose on your home or repossess your car or other belongings. Depending upon the type of bankruptcy you choose, you may also be able to have your debts discharged, or cancelled, so that you will never have to pay them back. You generally do not lose any of your assets because most of them are exempt or protected.
In both of the most common types of bankruptcy, which are Chapter 7 bankruptcy and Chapter 13 bankruptcy, you will be required to attend an online credit counseling session. This may sound like a burdensome and trivial matter to some debtors, but it is not. Credit counseling can help you learn to budget your money, avoid spending it unnecessarily, and even learn to save some of it. Many people have never been taught or had the opportunity to learn anything at all about how to handle their financial lives effectively, and for many, this is a first chance. This type of education can make a huge difference in how your financial future plays out.
Call to Schedule a Consultation With a Minnesota Bankruptcy Lawyer Today
If you want to learn more about the advantages of bankruptcy, call to schedule a consultation with a Minnesota bankruptcy lawyer today. The experienced legal professionals at the Hoverson Law Offices, PA are equipped to help you make the important decision about whether or not to file for bankruptcy. Visit our website at hoversonlaw.com or give us a call at 612-349-2728 and schedule a consultation with our professional staff. We’ll give you legal and financial guidance you can trust.