Benefits of Bankruptcy

The specific benefits to filing for bankruptcy are varied depending upon whether you file under Chapter 7 or Chapter 13, as well as the specific circumstances of your financial situation and your case itself. Possibly the most important benefit at the start of the bankruptcy process is that all debt collection efforts must cease once you file your bankruptcy petition. This means that creditor harassment, wage garnishment, foreclosure, debt collection lawsuits, repossession and all related activity must be placed on hold. Filing for bankruptcy can give you much-needed breathing room as you figure out what to do to save your home from foreclosure or what debts you wish to reaffirm so you can keep certain property.

It is a common misconception that filing for bankruptcy will mean that you will lose your home, your car and all of your possessions, and that you will not be able to rebuild your credit in the future. This is simply not the truth! Even when filing for bankruptcy you can ensure that certain assets are protected, particularly if you file under Chapter 13 and undergo a reorganization of your debt rather than a liquidation of assets to pay off creditors.

Stop Creditor Harassment and Eliminate Debt

When a Chapter 7 or Chapter 13 bankruptcy is successfully completed, this will mean that all eligible debt will be discharged. You will be free and clear of all eligible debt and will have no further obligation to those creditors. This is the final goal of any bankruptcy case and the reason it can benefit a debtor so greatly. Bankruptcy law truly offers debtors a second chance, a fresh start.

Contact our firm today to speak with a Chicago bankruptcy lawyer at our firm to discuss the particular benefits of bankruptcy and how it can change your life for the better.