Bankruptcy doesn’t sound like a good thing. For the most part, we only hear about bankruptcy when our favorite stores are shutting down. It seems daunting, overwhelming, and overall scary. But, bankruptcy actually has a lot of benefits and it is designed to help you, rather than to hurt you. When filing for bankruptcy, it is important to be educated about the process so you know what to expect. Read on to learn more about some of the benefits of filing for bankruptcy.
What Are the Benefits of Bankruptcy?
Contrary to popular belief, bankruptcy has a lot of benefits. Here are just some of the ways that filing for bankruptcy can help you:
- Save your home
- By filing for Chapter 7 or 13 bankruptcy, you may be able to stop foreclosure on your home.
- Discharge your debts
- Some forms of bankruptcy allow you to discharge many of your debts. These debts may include credit card debt and medical bills. Once your debt has been discharged, the lender can no longer pursue payment, making
- Faster loan modifications
- Through the Loss Mitigation Program and Procedures, you may be able to stop foreclosure on your home and quickly obtain a loan modification
- Strip a second mortgage
- When filing for Chapter 13 bankruptcy, you may be able to discharge your second mortgage if your house is worth less than your first mortgage.
- Lower your car payment
- If you have owned your vehicle for a certain amount of time, bankruptcy may allow you to reduce your loan to the value of your car.
- Catch up on payments
- You may be able to keep your home, car, and other secured assets by catching up on late payments through Chapter 13.
- Rebuild your credit
- After you successfully file for bankruptcy, you can start rebuilding credit by paying your remaining and future bills on time. Many individuals who file for bankruptcy are able to secure credit soon after the filing.
If you are facing financial troubles, bankruptcy may be your best course of action. You should reach out to an experienced bankruptcy attorney to discuss your options. Our firm is here to advocate for you and walk you through the bankruptcy process every step of the way. Contact us today to speak with a dedicated bankruptcy attorney. We will explore all possible avenues and help you get back on track.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.