Finding The Positive In Filing For Bankruptcy

If you are having difficulty paying bills in a timely manner, and you are noticing your debt escalating very quickly, filing for bankruptcy is an option that may help. Most people do not think of filing for bankruptcy as being a positive experience. However, there are instances when filing can be the best choice in handling your debt so you can get back in good standing with your credit. Here are some of the positive points of filing for bankruptcy, helping you determine if it is the right path for your own financial situation.

Freedom From Harassment

When you file for bankruptcy, automatic stay is put into motion so that creditors are no longer able to contact you directly. You will enjoy being freed from the hassle of annoying phone calls and disheartening collection notices you receive by mail. Your bankruptcy attorney would handle all correspondence, allowing you to feel less anxious about the process of debt-collection. Creditors will not be able to use tactics such as garnishing wages, foreclosing on property or repossessing larger items in an attempt to get paid.

Improved Credit

Although filing for bankruptcy will look unfavorable to your credit, over time it will no longer stain your reputation so you can begin with a fresh, new start. Filing for bankruptcy will stay on your credit report for seven to ten years, depending whether you file for Chapter 7 or Chapter 13 bankruptcy.

After that time, it will no longer be reported and if are careful about your financial decisions during the interim, there is a chance you will have spectacular credit when the reporting period is over. At this time, credit cards companies and loan services will start contacting you, allowing you the chance to improve your credit score even further if you use these services responsibly.


When you file for bankruptcy, filing for exemptions can protect some of your assets while you are waiting on results about your case. Exemptions are filed through your state or federally, but not both. Your lawyer will guide you in determining which would be best for your specific situation so you will be able to keep a hold on larger items, such as your home or your vehicle, while paying off your financial obligations. This gives many people filing for bankruptcy peace of mind in knowing they will not lose all their possessions as a result of filing.

For more information about bankruptcy, contact a lawyer such as Donna C Crooks Atty At Law.

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