Bankruptcy is a decision that many people consider with apprehension. It can be difficult to fathom how life could get better after bankruptcy. However, for some, it is the best option. Bankruptcy can provide relief from debt and improve your financial outlook. You can seek the help of attorneys at the Law Office of Corey L. Mills to find out whether bankruptcy is a good option for you.
Let us take this time to consider the benefits of bankruptcy.
This blog will help you learn more about how bankruptcy could benefit you in the future, so read on to learn more!
Prevent repossession, foreclosure, and utility shutoffs
If you are unable to make your payments, the bank or creditors may attempt to repossess your home or turn off your utilities. You could lose everything in this case. Bankruptcy can prevent these actions. In that way, your home doesn’t have to gain the notoriety of a foreclosure. Additionally, you will be able to keep your utilities. However, this doesn’t mean that you won’t end up paying extra fees in the long term.
Forfeit or sell your debts
If you file for bankruptcy, all of your debts will be wiped off the record. This means that creditors are no longer able to take back the money you owe them or sue for any unpaid debts. It also means that your creditors cannot sell any of your rights over the debts that have been forgiven in the bankruptcy.
Stop wage garnishment and other aggressive collection efforts
If you file for bankruptcy, creditors cannot take money from your paychecks. Your wages will be protected from any collection activities. This means that you won’t have to worry about creditors attempting to repossess your vehicle or bank accounts. If a creditor attempts to collect on your debts, they could be sued themselves simply because they attempted to take away money that belongs to someone else.
Fix your credit
Your credit score will improve after you file for bankruptcy. Your old debts will be wiped off, and your creditors won’t be able to impose any additional damage to your credit. The best part is that you will not have to pay anything extra for this service. However, keep in mind that your credit score won’t improve overnight. It is something that happens over time after three or more years of filing for bankruptcy.