Many people find themselves in tough financial situations at one time or another in their life. Falling into debt can be overwhelming and, in some cases, it’s difficult to overcome. Not everyone who finds themselves in financial distress is irresponsible or has bad judgement, sometimes a single bad medical bill can send you into debt that you cannot recover from.
Fortunately, there are options so people in these situations can get a fresh start. Filing for bankruptcy is one. You may have a negative idea of bankruptcy, but there are several benefits that can come from this process that can help you recover and move forward.
There are several reasons people file for bankruptcy. It provides a variety of benefits to people in difficult financial states. A few of the main benefits include:
- Discharging debt: Depending on the type of bankruptcy you file, some of your debts may be discharged, meaning you are no longer legally required to pay them. It permanently prevents creditors from collecting these debts and from contacting you about them.
- The automatic stay: This court order directs your creditors to immediately stop their collection attempts. It will stop creditor harassment and can even prevent eviction or foreclosure.
- Tax discharges: Some types of bankruptcy allow the discharge of taxes related to debt, in addition to the debt itself.
Bankruptcy can provide various forms of financial relief to struggling people. In many cases the fresh start is the most important benefit it offers. Most people who file for bankruptcy want a clean slate, so they can move forward from their financial troubles and begin functioning normally again, without the weight of debt.
If you think filing for bankruptcy is the right option for your situation, contact an attorney to learn more. Bankruptcy is a good solution for many people and an attorney will know what will work best for you and can help you get a favorable outcome when filing for bankruptcy.