For those who qualify, bankruptcy is truly a way out of trouble. You’ve been trying to ward off your creditors, and in doing so may be barely getting by, and living under extreme stress. Stop draining your retirement accounts and other savings and realize that bankruptcy can be very positive. Here are five benefits to filing for bankruptcy protection:
1. You Can Keep Your Home
While bankruptcy is handled through the federal court system, state law can come into play concerning your assets. Wisconsin residents filing for bankruptcy can take advantage of Wisconsin’s generous exemptions concerning the home in which they reside. If the net equity in your home is less than $75,000 ($150,000 for a married couple), you will not be in jeopardy of losing your home due to a Chapter 7 bankruptcy filing. In addition, even if your equity exceeds the exemption amount, you can still keep your home by filing a Chapter 13 bankruptcy. A skilled bankruptcy attorney will be able to let you know exactly what options are available to you concerning your home.
2. Your Creditors Will Stop Hounding You
For those who are drowning in debt, constant contact from creditors and collections agents are a persistent problem. One of the benefits of bankruptcy is that from the moment you and your lawyer file your petition, you will enter an automatic stay period meaning that your creditors can’t contact you. If they do, the court can penalize them.
3. You’ll Be Discharged Of Your Debt
In either Chapter 7 or Chapter 13, the debtor is discharged of their unsecured debt including medical bills, credit cards, and car payments. In a Chapter 7 filing, the debtor is usually discharged within approximately 90 days. In a Chapter 13, the debtor is discharged once the payment plan is completed.
4. No One Has To Know
Your friends, family, and co-workers don’t ever have to know you filed for bankruptcy. The myth that all bankruptcy filings are printed in the newspaper or made public online is just that – a myth. You have the right to keep your financial information private. The only time your filing would come out is if you’re asked for a credit history report when applying for a new loan or credit card. Unlike state court filings that are accessible to anyone with a computer and internet access, the federal court system is not available online to the general public.
5. You’ll Get A Financial Fresh Start
After your debt is discharged, your slate has been wiped clean. You can now apply for new loans and credit cards. The interest rates won’t be stellar right away, but the best way to rebuild your credit is to operate under those terms and prove that you are a responsible borrower. While your bankruptcy filing will remain on your credit report for 7-10 years, you can get credit again well within that time period, and the more responsible you are the more favorable the credit will be. In addition, by being responsible and taking out only credit which you can reasonably afford, you will be able to save money instead of continually paying high interest toward multiple credit cards and loans.
In these difficult times, more people than ever need a fresh start. Call the experienced bankruptcy attorneys at BLC Attorney today. Make an appointment to come in by calling 414-257-1900. We know the bankruptcy laws, and we can answer all of your questions.