Three Things Bankruptcy Can Do For You -


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Three Things Bankruptcy Can Do For You

Bankruptcy is a scary word to a lot of people, and the idea of actually filing a case is even scarier. But bankruptcy is a very real way to get out of debt and to stay out of debt. This is important if you are drowning in credit card bills, have a lot of medical expenses, or have had to rely on signature loans just to get by each month. When you file a bankruptcy case you can eliminate or at least drastically reduce these debts, and can also manage your secured obligations as well.

Three things bankruptcy can do for you if you need financial relief are:

● Stop wage garnishments and other collection lawsuits that are pending against you. When you file a bankruptcy case you get the benefit of the automatic stay, which is a legal mechanism that prohibits continued collection efforts from the instant your case is filed. When creditors are required to stop their efforts against you, you get a breath of fresh air and can rest easy knowing you won’t be called and harassed for payments you are unable to make.
● Wipe out unsecured debt, like credit cards and other loans that were not taken out for the purpose of buying a piece of collateral. Unsecured debt is one of the largest debts most households deal with monthly, and not having to make these payments relieves a huge amount of undue stress.
● Reorganize your debt into a manageable repayment plan. This is what happens when you file a Chapter 13 case and are given the opportunity to propose a plan of repayment for all of your debts. In a Chapter 13 case you will be able to cure any mortgage arrearage, pay back only a portion of unsecured debt, and pay the value rather than the balance for your vehicles. This type of bankruptcy provides substantial savings, giving you more money each month to cover other expenses like utilities and insurance.

If you are unable to pay all of your bills, filing bankruptcy will give you the relief you need to start over. Even though it might seem like an uphill climb, once you take the first step you are well on your way to financial freedom.

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