What are the Benefits of Bankruptcy?
We often speak with clients who question the benefits of bankruptcy. They assume (wrongly so) that filing for bankruptcy is a form of punishment or believe the stigma that surrounds bankruptcy. Let us take the time to break down some of the benefits to filing bankruptcy to give you an understanding of what filing can do to help you achieve financial peace.
First, let’s explore common myths:
- Filing for Bankruptcy means I am a failure – FALSE
Several studies have shown most bankruptcies are filed due to circumstance out of their control. Piled up medical bills, job loss, or divorce to name a few examples. Few people file bankruptcy because they mismanaged their money. Even then, it doesn’t make you a failure. Just the opposite! Filing bankruptcy demonstrates that you recognize the need to correct financial issues and that you’re doing something about it.
- I’ll lose all my property if I file Bankruptcy – FALSE
Exemptions vary from state to state but most of the time you are able to salvage your belongings, stop foreclosure proceedings and take an active approach to avoid losing your property.
- I’ll never be able to get credit again – FALSE
Once you file bankruptcy, often times you will begin to see offers from credit lenders within a few weeks. In fact, this can actually help you improve your credit score.
So, what are some of the benefits of filing for bankruptcy:
- Stop foreclosure proceedings and silence creditors
We know the burden you’re facing and the piled-on stress from creditors. By filing for bankruptcy, you can bring all of that into a screeching halt.
- Know your options and take control of your financial situation
Sometimes our clients feel like there is no way of out of the heavy financial burden and feel trapped. We can help you explore the best options to take control of your financial situation.
- Achieve financial peace and a fresh start.
Filing bankruptcy can alleviate the burden and offer a breath of fresh air so you can correct your financial situation and begin the process of rebuilding. In other words, giving you the ability to start fresh without all the worry and stress attached.
At Troutman & Napier, we want to inform our clients of all their options, eliminate the stigma of bankruptcy, and help them achieve a fresh financial start. Take control of your finances now!
We are more than just lawyers; we are your legal counselors.
Troutman & Napier, PLLC.