Oftentimes filing for bankruptcy is seen as a defeatist and negative outcome. Nonetheless, filing for bankruptcy can truly help you safeguard your finances and keep your head above water when submerged in insurmountable debt. Bankruptcy can also accommodate to the debtor’s unique situation, so that if the debtor has limited access or no access to regular income, they can file chapter 7 bankruptcy, or if they are able pay to the collectors in a monthly basis with the help of a payment arrangement, they can file for chapter 13 bankruptcy. Regardless of the circumstance you find yourself in, if you are considering filing for bankruptcy, we recommend reading through this article to learn about the various ways in which filing for bankruptcy can benefit you.
According to Legal Match, one of the great things about filing for bankruptcy is that it “triggers an “automatic stay” which stops creditors from taking action to collect debts, and repossessing property such as cars, and personal property. It also prevents creditors from calling you, suing you or sending you letters.” Most people who are struggling with unmanageable debt and are examining the possibility of filing for bankruptcy are fearful that their home and car along with other invaluable assets will be taken away, but bankruptcy filing in most cases does not represent losing your home or vehicle. That all depends on whether the asset is labeled as exempt or nonexempt property. While the situation still isn’t the most desirable, this option provides tremendous relief to people who are being constantly bombarded by collectors day in and day out and fear their home or vehicle will be taken from them even if they lack the means to pay the collectors.
No Fear of Losing Your Livelihood and Stability
Another great aspect of filing Chapter 7 bankruptcy along with other kinds of bankruptcy, is that “evictions, foreclosures, wage garnishments and utility shutoffs” are automatically stopped. Going through an eviction or foreclosure can be pretty traumatic which is why it is recommended that if you’re struggling to manage your debt and are at serious risk of being expelled from your home, you consult with a bankruptcy attorney who can help you file for bankruptcy in Tulsa, Oklahoma before it’s too late.
Eliminating or Modifying Secured Debts
According to the National Association of Consumer Bankruptcy Attorneys another benefit of filing for bankruptcy is that although “a bankruptcy discharge by itself does not eliminate the liens on a debtor’s property that secured creditors have obtained before bankruptcy…other provisions in the Bankruptcy Code do give debtors mechanisms to deal with the most secured creditors.”
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.