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Benefits of Bankruptcy

Would bankruptcy help your situation?

Unfortunately, being in debt can have many negative consequences, some of which can affect your happiness, your health, and your overall wellbeing. Money troubles are known for leading to stress, anxiety and emotional turmoil which can cause too many sleepless nights and lead to marital discord. Anyone who ever said money doesn't buy happiness probably never struggled with paying their rent or mortgage, keeping the lights on or putting food on the table.

Fortunately, the federal government supports filing for bankruptcy, and the bankruptcy laws were created to help people who can't afford to pay their creditors so they can gain a fresh start. Consumers generally file one of two bankruptcies – Chapter 7 or Chapter 13. With a Chapter 7 the debtor is able to discharge qualifying unsecured debts such as credit cards, personal loans, medical bills and taxes of a certain age. This bankruptcy is reserved for those who really need it and can't afford to enter into a repayment plan. In contrast, with Chapter 13 debtors enter into a 3 to 5 year repayment plan where they pay off all or a portion of their debts.

Advantages to Filing for Bankruptcy

  • Relief from creditors:With both bankruptcies, debtors enjoy immediate relief from the "automatic stay" which goes into effect when they file their bankruptcy petition. The automatic stay prohibits creditors from engaging in collection activities including contacting the debtor by phone or mail. Once the automatic stay goes into effect, you can gain immediate relief knowing that those harassing phone calls will stop and the upsetting letters will stop coming in the mail.

  • Discharge of debt: The bankruptcy discharge releases the debtor from all personal liability in connection to qualifying debts. This means that after a bankruptcy has been discharged, the creditors are prohibited from pursuing the debtor for debts discharged in the bankruptcy.

  • Rebuild your credit score: Rebuilding credit after bankruptcy is entirely realistic providing the debtor follows a few simple credit-rebuilding steps which are similar to building good credit to begin with. Debtors can look forward to obtaining credit cards, auto loans and even home loans (generally 3 years or so after a discharge) within a few short years with a little discipline. While a bankruptcy does stay on a credit report for 10 years, it's possible to achieve a 750 credit score well before the bankruptcy falls off the report, and this is very encouraging.

Bankruptcy is an honest solution that has helped millions of debtors across the country. Some may have fallen on hard times while others have made poor financial decisions. But there is hope and we can help you find financial relief. If these benefits of bankruptcy sound appealing to you, don't hesitate to call us.. When you contact us, we can go over your options and help you determine whether bankruptcy or another debt relief alternative can help you.

Contact a Detroit bankruptcy lawyer from the Cartwright Law Firm, P.C. today!

Chapter 7
Chapter 13
Bankruptcy Exemptions
Bankruptcy FAQ
Bankruptcy Myths
Benefits of Bankruptcy
Creditor Harassment
Credit Repair
Discharging Debt
Debt Relief
Do I Qualify for Bankruptcy?
The Bankruptcy Process
Life After Bankruptcy
Loan Modification
Means Test
Mistakes To Avoid
Free Consultation: 248-973-7834
Cartwright Law Firm, PLLC - Detroit Bankruptcy Lawyer
Located at 24750 Lahser Road Southfield, MI 48033. View Map
Phone: (248) 973-7834