The decision to file for bankruptcy never comes easy for anyone. It is usually a decision that gets made from years of financial hardships that are not easy to overcome without a huge help. For some, the benefits of bankruptcy are worth the process. Below are some of the main benefits of filing for bankruptcy. If you decide to go through with the process, hire a reputable bankruptcy attorney in Erie, PA, such as the one found at www.mcelrathlaw.com for help.
Trigger An Automatic Stay
The main relief most filers get right away after filing for bankruptcy is the automatic stay. This is what prevents any of your creditors from taking further actions to try and collect debts from you. They will no longer be able to sue you, call you, send you letters in the mail or try to repossess your belongings.
Discharge Your Debts
Depending on your situation and the type of bankruptcy you file, you may be able to get most or all of your dischargeable debts canceled. This means that any debts of yours included in your bankruptcy filing will not be owed by you any longer. You will be free and clear of them. Bankruptcy filers are free of the debts weighing them down and will be able to start fresh financially.
If you are able to use some of the exemptions included in the bankruptcy process, you will be able to keep most of your property. This means you could file and keep your cars and your home after the process is finished.
A bankruptcy will have a negative effect on your credit. Once your bankruptcy is filed and discharged, it will remain on your credit report from seven to ten years. However, because most filers get their debts forgiven during the process, they will be able to start rebuilding their credit right away. These are just a few of the top benefits filing for bankruptcy can offer someone drowning in debt. All factors should be taken seriously because the process is a complicated and emotional one.