Scared to File For Bankruptcy?

Scared to File For Bankruptcy?There are many people that avoid filing for bankruptcy and find themselves in extreme financial situations as a result. Bankruptcy is often considered the last resort for many people but it can be an extremely helpful legal option if you find yourself struggling with debt.  Bankruptcy doesn’t have to be a scary process and there are some excellent advantages to filing for bankruptcy before it’s too late. If you are struggling in your current financial situation and you are scared to file for bankruptcy, here are some of the advantages that you could receive by filing for bankruptcy before your financial situation gets more difficult!

You Can Ask For Advice

Asking for advice on a bankruptcy and having another person know what your financial situation is can often be beneficial. When working with a debt consolidation expert, you can establish a repayment plan that you can use to pay off all of your debts. Making a few adjustments could leave you in a much more comfortable position than a repayment plan that’s established through chapter 13 bankruptcy. Negotiating with your creditors before a bankruptcy through debt consolidation could be more beneficial for maintaining your credit rating.

Some Assets Will Be Protected

Even if you are filing for Chapter 7 bankruptcy, which is a liquidation bankruptcy, you will not have to liquidate all of your assets. Under Chapter 7 bankruptcy, you can often protect some assets which can include your main home, a vehicle or even some of your savings. If you don’t own real estate you can protect up to $4000 in assets as part of a chapter 7 bankruptcy. Consulting with an attorney before you go through the process of bankruptcy will help you learn the assets that you can protect and what you will be responsible for selling off as part of the bankruptcy.

You Can Protect Yourself From Creditors

Filing for bankruptcy early on if you are just starting to receive calls from creditors and collections agencies can be important. As soon as you filed for bankruptcy, you will have an automatic injunction on your financial records that puts a hold on any actions taken by creditors. 

You Can Discharge The Majority of Your Debts

Even under a Chapter 13 bankruptcy agreement you will likely not be responsible for paying the full cost of your debts. Filing for bankruptcy can save you money especially if you’ve accumulated an unmanageable amount of debt. Filing for bankruptcy before your debt gets worse will also ensure that your creditors can give you a bit more leeway in negotiations. By having a plan in place for your finances and making sure that you can discharge the majority of your debts quickly, you can enjoy peace of mind regarding your situation.

It Can Help Your Credit Recover Faster

Filing for bankruptcy will affect your credit rating a bit but the damage that you do by continuing to fall deeper into debt is significantly worse. Your credit can recover over time especially if you are proactive with filing for bankruptcy. After a chapter 13 bankruptcy discharge, you can start to apply for many financial products in just two years after the bankruptcy proceeding. You’ll also likely be able to access secured financial products like a secured credit card throughout a bankruptcy so that you can work at rebuilding your credit. Rather than continuing to damage your credit, consider filing early so that you can get ahead of debts and work at improving your credit proactively.

If you are interested in getting out ahead of your debts, consider working with a bankruptcy attorney before you file for bankruptcy. If you have been holding off on filing for bankruptcy or even thinking about bankruptcy, consider the top advantages of filing early on so that your finances can be preserved for the future. Contact us today for more information!