How Bankruptcy Shortcuts your Financial Recovery

Are you drowning in debt like so many people are these days? Does it feel like you always have “too much month at the end of the money” every month? You can either soldier on and try to change your fortunes in this tough economy or take the easier route – file for bankruptcy.

How does bankruptcy put you on the road to financial recovery? There are 2 forms of bankruptcy for individuals (as opposed to companies, municipalities, governments etc) and they are called Chapter 7 and Chapter 13 bankruptcy (following the sections in the bankruptcy code that govern them). Each of these bankruptcies work in different ways and both bring benefits.

The most obvious benefit is that bankruptcy wipes you financial slate clean of all your debts. Under Chapter 7 bankruptcy (called liquidation bankruptcy), your non-exempt assets are liquidated and the proceeds are used to pay off your debts. After all non-exempt assets are sold off, the rest of the debts are forgiven so that you can have a fresh start financially.

Under Chapter 13 bankruptcy you are given a schedule to repay your debts over a maximum of 5 years. This gives you some breathing space to finish paying off your debts over time. So whether you file for Chapter 7 or Chapter 13 bankruptcy, your debt problems will soon be a thing of the past.

Another benefit of bankruptcy is Automatic Stay. Automatic stay is a court-ordered prohibition imposed on all your creditors disallowing them to communicate with you in any form while you are under bankruptcy protection. This means an end to all harassment, badgering and hounding from hardline creditors. Automatic stay comes into effect immediately upon the confirmation of your bankruptcy.

In addition, choosing bankruptcy saves you time as it cuts the recovery curve in dealing with your debts. We all know the vicious cycle of debt and repayment that never seems to end because your debts keep increasing even though you try to pay as much as you can each month. All the money you pay is like throwing it into the Black Hole of Calcutta, it never seems to fill it. But bankruptcy can put an end to this vicious cycle and allow you to save not just money but time as well.

Finally, when you file for bankruptcy, you get advice on how to manage your financial affairs through the bankruptcy from your bankruptcy attorney and bankruptcy trustee. Your bankruptcy attorney is your most valuable ally in your fight against debts and your bankruptcy trustee is your arbiter between you and your creditors.

So if you are considering filing for bankruptcy, call us at (813) 200 4133 for a free consultation. Our team of experienced bankruptcy attorneys are at your service.

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