April 10, 2020
While the term “bankruptcy” can carry a bit of a negative connotation, there are circumstances where bankruptcy is the best option to keep you financially afloat. Filing for bankruptcy can give you the chance to start fresh, alleviate crippling stress and allow you to rebuild your credit, restarting your finances. It’s time we break down the stigma that comes with the idea of bankruptcy. In this article, we address the advantages of filing for bankruptcy.
When you file bankruptcy, it is saying you cannot afford to pay outstanding debt to your creditors. If you are approved for bankruptcy, you will be relieved of the obligation to repay some or all of your debt. Perhaps the biggest advantage of filing bankruptcy is that you financially get to start over again. In some cases of bankruptcy, you may be able to keep your assets while being cleared of your debt.
Protecting You Against Creditors
We know how ruthless creditors can be. Creditors can call on a regular basis and possibly to a harassing degree. When you successfully file for bankruptcy, it will put an automatic stay on your account that prevents creditors from forcefully collecting debts. Along this line, creditors cannot:
- Continue calling you
- Sue you
- Send you letters
- Repossess exempt property that you owed on
Additionally, bankruptcy forbids creditors from shutting off your utilities, evicting you, foreclosing your property or garnishing your wages. Depending on whether you file Chapter 7 or 13 bankruptcy, and the applicable bankruptcy exemptions, you may keep most of your property through the process.
Debt Forgiveness
Bankruptcy typically deals with two kinds of debt; dischargeable and nondischargeable. When you file, you can protect your property and may be relieved of any obligations to pay on dischargeable debt. This type of debt follows anything that is unsecured debt. Unsecured debt is when there isn’t any collateral on what you owe. This can be credit card debt, medical debt, personal loans, etc.
When you do not have enough assets that are not exempt or you do not have enough income to pay your creditors, you most likely will be able to file a Chapter 7 bankruptcy. This means that unsecured debt can be forgiven. If you have too much property that is not exempt or your income is such that you are able to at least pay for some of your debt, you may need to file a Chapter 13 bankruptcy. If you file for Chapter 13, you will go through a 3-5 year payment plan to pay back some or all of your unsecured debt. After you complete this plan, whatever amount of unsecured and dischargeable debt that remains will be discharged, and you will be debt-free.
Protecting Yourself and Your Family
A lot of the time, debt collectors can bring tremendous amounts of stress on debtors. Living paycheck to paycheck and having only enough for the essentials can lead debtors to believe there’s no way out. It can be discouraging when you’re thrown into an endless cycle of debt where your credit card balances keeps rising. This is when filing bankruptcy might make more sense than continuing to try to fight through it.
Along with clearing you of your debts, bankruptcy filing requires a debtor to take credit counseling to take all the measures possible to avoid future bankruptcy. Becoming literate in your finances can help strengthen and rebuild your credit.
There are a number of advantages to filing for bankruptcy, but the best way to start is to discuss your options with one of the bankruptcy attorneys at Cravens & Noll, P.C. We will review your financial profile and assess whether this is the right option. Our goal is to help our clients get back on their feet as soon as possible, so we will provide professional legal advice on your best options moving forward.
We know this is a sensitive issue for many people, and we are here to help. Contact Cravens & Noll P.C. today to learn more.
At Cravens & Noll, an experienced Virginia law firm, we are Your Lawyers For Life and have protected and served the rights of over 30,000 people just like you throughout Virginia across 4 Decades in Business. This is why we have been voted one of The Best Law Firms and The Best Attorney in Richmond by the Richmond Times-Dispatch.
We know that every legal case is always…personal. No matter what you are facing right now our attorneys will provide the solutions you need, at a reasonable price. Whether divorce, personal injury, criminal charges, or bankruptcy. We work hard to be your lawyers for life. That means giving your individual case the one-on-one attention and care it deserves.
Our team of trusted and local lawyers will never give false expectations about the potential outcome of your case. You can count on a realistic assessment of your case, in order for you to make a sound decision.
With offices in Richmond and Harrisonburg, we will assist you with dedicated and professional legal advice. In times like this, you need answers, stability, and confidence. Our calculated approach quickly evaluates and stabilizes your situation immediately to prepare you for the legal matters ahead. Our goal as your attorney is that you feel immediate relief from the moment you contact us. We can meet with you face-to-face, by video, by telephone, or together in our office.
Contact our Virginia attorneys today for a consultation. At your appointment, we will ease the burden on your shoulders and provide you with options on how to proceed. Before taking a case, Cravens and Noll lawyers provide an initial consultation for clients.