Benefits of Bankruptcy
Are you feeling upset because you are going to be filing for bankruptcy? It may seem like a failure, but there are some surprising benefits of bankruptcy that you may not be considering.
Benefits of Bankruptcy | Chapter 7 Bankruptcy
I’m often asked what the benefits are for filing a chapter 7 bankruptcy. A chapter 7 bankruptcy is a full bankruptcy where you are able to discharge that in your retiring. Typically, a chapter 7 bankruptcy is going to eliminate unsecured creditors and at the same time allow you to re-affirm, continue to pay on secured creditors such as mortgages and car loans. Benefits of a chapter 7 bankruptcy are substantial to the indenter, first of all you are able to eliminate the unsecured debt, you’re able to take care of the garnishments and eliminate those, take care and eliminate the harassing phone calls that you are receiving on a daily basis and at the same time, I am often to protect most, if not, all of your assets. A chapter 7 bankruptcy, even though it’s a full bankruptcy where you discharge that, does not mean that you lose everything. Many assets are exempt under the bankruptcy code.
Benefits of Bankruptcy | Chapter 13 Bankruptcy
Many people do not completely understand what a chapter 13 bankruptcy is or the benefits, or the repercussions of filing a chapter 13 bankruptcy. The chapter 13 bankruptcy is designed for those people, particularly those people who fall behind on their mortgage or their car payments; they would love to be able to catch up. Maybe they fell behind because there’s a period of time where they weren’t able to work, maybe because they were laid off, maybe it was a medical reason. Now they’re back at work and they can afford to meet their regular monthly mortgage payments, they could afford to take care of their regular car payments, but they can’t afford to pay a lump sum to the creditor in order to bring those accounts to current. A chapter 13 bankruptcy allows you to take the arrears that you owe on your mortgage or your car and pay it over a period of 3 to 5 years and at the same time, allow you to resume making your monthly mortgage payments. It’s very beneficial to someone who’s had a situation where they’ve fallen behind through no fault of the wrong, quite frankly, but would love to catch up at a present time.
Benefits of Bankruptcy | How to Prepare
If you’re considering filing a chapter 7 or even a chapter 13 bankruptcy, there are certain things that you can prepare in advance to meeting in our office. The documents that we’re going to need to have and we’re going to be asking for will be your tax returns for the past 2 years, pay stubs that you’ve received over the past 2 or 3 weeks. We’re also going to be asking for information with regards your creditors. Now many people lose track over a period of time, and maybe we have to order a credit report in order to make certain that we fully understand what your obligations are. We’re going to need to have the copies of your titles to the car, we’re going to want to see your driver’s license and social security card, and if you have any secured creditors, mortgages, leads on vehicles. We want to see with information regards to those. Account statements showing your current balance, a statement showing what is owed on the vehicle, those could be very, very helpful.
If you would like supportive legal guidance for your bankruptcy, please don’t hesitate to call our Buffalo debt relief lawyer Randy Gugino today for a free consultation.