Becoming Debt Free Through Bankruptcy
If you're ready to eliminate your financial burdens and become debt free, it may be time to consider what filing for personal bankruptcy could do for your personal finances. Debt can cause significant stress and often leads people to feeling helpless and frantic. Luckily, personal bankruptcy protection may be able to offer you relief.
Deciding whether bankruptcy is an option for you requires a thorough assessment of your financial situation. A local attorney can help you evaluate your options, including bankruptcy. To connect with a bankruptcy lawyer right away, please complete this form.
How Bankruptcy Can Help You Become Debt Free
So what can personal bankruptcy do for your finances to help eliminate your debt? Here's a look at the way bankruptcy typically works for individuals.
- Protection from debt collectors: As soon as you file your bankruptcy petition with the court, a legal protection called the automatic stay takes effect. This protection prevents collection action of any kind against you, including repossession, foreclosure, garnishment, phone calls and mail contact. The automatic stay's protection remains effective for the duration of your bankruptcy case.
- Chapter 7 – discharge of debts: If you choose to file under Chapter 7 of the U.S. Bankruptcy Code, the bankruptcy court will discharge some of all of your unsecured debts (that is, debts not connected to any property). In other words, you will no longer have to make payments on these debts and can move forward with your finances.
- Chapter 13 – a chance to catch up: If you choose to file under Chapter 13 of the U.S. Bankruptcy Code, the bankruptcy court will allow you to set up a three- to five-year repayment plan in which you'll be able to catch up on past-due debts while staying current on any debts that come due during that period. In Chapter 13 plans, filers are often able to keep their homes, cars and other valuable assets. At the end of the repayment period, the court may discharge any remaining debts so that you exit bankruptcy with a clean slate financially.
- Financial skills for the future: In addition to a fresh financial start, filing for bankruptcy can provide you with tools to help you establish a financially stable life post bankruptcy. This is thanks in large part to the Debtor Education/Financial Management course that all bankruptcy filers are required to complete before receiving their discharge from the court. As its name suggests, the Financial Management course provides filers with tips for managing their finances responsibly in order to maximize the benefits they get from the bankruptcy court's fresh start.
Ask a Lawyer about How You Can Become Debt Free
If you're ready to see what bankruptcy may be able to do for you and your finances, it's time to take advantage of this offer to connect with a bankruptcy lawyer near you for a free consultation. Find out today whether bankruptcy may be able to help you become debt free and start over financially.