Today, the word bankruptcy is considered negative. Many people view bankruptcy as something detrimental and bad for your life. And while it is true your credit score will take a hit, bankruptcy is intended to be a good thing and should be viewed as such. For starters, bankruptcy is a way to clear or discharge your debts and that means a fresh, new financial start. The best part is that is not the only advantage of bankruptcy.
Discharges, Protections and Automatic Stays
Through bankruptcy, whether it be Chapter 7 or Chapter 13, the end goal is to rid of all or most of your debt. This happens when you receive a discharge, which wipes out your obligation to pay for your unsecured debts. While a handful of debts exist that are not dischargeable, bankruptcy is still a quick and easy way to financial stability for most.
Another benefit to filing for bankruptcy is the protection of property and income from unsecured creditors. These unsecured creditors are usually those who did not take a lien on property as collateral at the time of the transaction, which means bankruptcy could provide you with total protection of your home, car or other vital piece of property.
A third, and oftentimes most important advantage to bankruptcy is the automatic stay, which comes as soon as you file your petition. An automatic stay is a court order that prohibits creditors from making collection attempts. This makes it so the bankruptcy can proceed in an orderly fashion. An automatic stay puts a halt on repossessions, garnishments and attachments, foreclosures, evictions and utility shutoffs. If a creditor violates the automatic stay, they put themselves at risk of money damages, attorneys’ fees and contempt of court.
NJ Bankruptcy Lawyer Can Help
When it comes to filing for bankruptcy, it is in your best interest to consult an experienced bankruptcy attorney. They can help figure out which bankruptcy option is best for your situation. In New Jersey, the Law Office of Joel R. Spivack can help with your bankruptcy needs. Whether you are looking for help filing for bankruptcy or looking for information on bankruptcy alternatives, Mr. Spivack will provide honest advice and his best recommendation for a debt relief solution. Get in touch with his office today by filling out the online contact form and take your first step towards financial stability.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.