The main advantage of filing bankruptcy is receiving a fresh start. Chapter 7 generally is a 4 to 5 month process. At the end of that process, for most clients, all of their unsecured debts are discharged. This means you are no longer responsible for the payments of debts like credit cards, medical bills, personal loans, repossession deficiencies, and old utility bills.
Bankruptcy provides the legal way to notify your creditors that they can no longer contact you or take any other steps against you to collect a debt. This means that the bankruptcy will stop telephone calls, lawsuits, magistrate hearings, garnishments, and levies. It is a powerful tool.
Bankruptcy has the advantage of being affordable. In most cases it is cheaper to file a bankruptcy than to negotiate and settle your debts. Our firm offers payment plans as low as $100 a month after the initial retainer for our bankruptcy clients. Debts that are forgiven in bankruptcy are not taxable unlike debts settled by a debt settlement company.
An advantage of filing bankruptcy with our firm is that we are local. We have local offices and local attorneys. When you hire me to file your bankruptcy, I will be your attorney. I will be the attorney that meets with you, and I will be the attorney that attends your hearing with you.
One of the biggest advantages to bankruptcy is that you are able to begin to rebuild your credit immediately after your case is discharged. If you decide to do a debt negotiation, it can take years to complete the debt negotiation process with companies in other states who you have never met, slowing down the process of you rebuilding your credit.
Bankruptcy generally allows you to keep your home, your car and retirement accounts, allowing you to rebuild while keeping all of your assets and income.
If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-832-2499.