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What are the benefits of bankruptcy?

What are the benefits of bankruptcy?

You often hear about the downsides of filing for bankruptcy in New York, but this process can be anything but negative. In fact, filing bankruptcy has many benefits that often can really save your finances and help you to get back on track. There is simply nothing wrong with filing, but it makes it a bit easier to accept doing it when you understand the many ways it can benefit you.

The American Bar Association explains that when you file bankruptcy, you are typically in a seriously bad financial place. The chances are pretty good that you have creditors contacting you often. One of the first things that filing for bankruptcy protection will do is put a stop to creditors contacting you.

It also gives you a chance to either develop a manageable plan to pay back your debts or wipe your debts out legally with no obligation to pay. That depends on the type of bankruptcy you file. In either case, you get put back into control over your finances.

Also dependent on the type of bankruptcy you file and your personal situation, you may get to keep many of your assets, which means you may not lose your vehicle or home. This is most likely if you file Chapter 13, which is the repayment plan. You will continue to be able to pay your mortgage or car payment under your bankruptcy plan and keep those assets.

Lastly, when you file, you get protection against an employer firing you for filing bankruptcy. Without this protection, an employer very well could fire you for a bad credit report, especially if checking your credit was part of the hiring process. This information is for education and is not legal advice.