- February 9, 2018
- Thomas Adam
Over the last three decades, approximately one in 10 adults in the United States filed for bankruptcy relief. Even though filers often feel as though filing for bankruptcy is a sign that they have failed to manage their money properly, the reality is that most filers are hardworking individuals who have recently suffered a significant financial setback. Job loss, divorce, and medical issues are the leading reasons cited for bankruptcy filing, with the average filer being an educated full-time worker. Understanding the top three benefits of filing for bankruptcy relief may help give you a better idea of why bankruptcy is a viable solution for your financial problems rather than a defeat.
Keep Your Property
Once your debts have fallen significantly behind, creditors begin exploring ways to obtain compensation through methods outside of traditional debt repayment arrangements. Creditors, especially those whose loans are secured with tangible property, may attempt to repossess or foreclose on the property in question. Bankruptcy gives you an opportunity to keep your property, especially if the only home you own is your primary residence or a vehicle that is not fully paid off is your only means of transportation. Some property may need to be liquidated, but bankruptcy protects your most important assets while giving you an opportunity to rebuild your credit.
Stop Debt Collection Activity
Debtors who have fallen seriously behind receive telephone calls, letters, and even visits on a daily basis. These collection activities become more aggressive as the debt continues to go unpaid. While no one looks forward to being contacted by creditors, the serious psychological impact of aggressive debt collection tactics is often overlooked. Research has shown that the stress caused by excessive debt and subsequent collection activity leads to difficulty remembering things, solving problems, depression, and mental illness. Filing for bankruptcy relief stops debt collection activity, giving you an opportunity to think about your next steps without being hounded by overly aggressive creditors.
A New Financial Start
After completing your bankruptcy period and receiving a discharge, you are able to benefit from a fresh financial start. It is possible to start rebuilding your credit by obtaining credit cards and loans without being penalized by your past debts or adverse judgments. Since the bankruptcy will stay on your credit report for several years after discharge, you will not be able to receive ideal interest rates, but you will usually have more options available to you than when you were drowning in debt.
Discuss Your Options
The decision to file for Chapter 7 or Chapter 13 bankruptcy relief is often difficult and very personal. Your unique financial situation will influence which option is best for you and what choice will offer you the best long term benefits. The bankruptcy attorneys at Adam Law Group are here to help you find an affordable solution to your situation. We guide you through each step of the bankruptcy process, helping you regain control over your financial future. Contact us today to schedule a consultation at our conveniently located Jacksonville, Florida office so that we can begin helping you explore all available options.