2021 was a crazy, unstable and chaotic year filled with financial uncertainty for millions of Americans. The impact of the pandemic can still be felt around the world, and many markets have yet to recover fully. However, the most affected by this economic turmoil have undoubtedly been the hard-working individuals who are struggling to make ends meet month after month.
Unfortunately, many have had to take on excessive debt to meet their daily expenses and support their families. However, this has trapped them in a spiral of debt that seems to have no end in sight.
If this is the case for you, then you may be looking for a way to get out of debt and regain control of your finances once and for all. Fortunately, there is a legal alternative that you can use to accomplish that; we are talking about bankruptcy.
Bankruptcy can be your lifesaver.
Deciding to file for bankruptcy is not an easy decision, and you may think that it won’t bring you any benefits. However, the opposite is true. If you’re drowning in debt, bankruptcy can be the lifesaver you need to stay afloat and rebuild your finances.
Here are six crucial benefits of filing bankruptcy in 2022:
It’s a cheaper option
Bankruptcy is usually the least expensive debt relief option available. Other alternatives, such as debt consolidation and developing a debt management plan, typically require you to pay the total amount owed (plus interest).
Conversely, bankruptcy will allow you to completely get rid of most of your unsecured debts. Naturally, during the process, you will have to pay for things like filing fees, the cost of credit counseling courses, and your attorney’s fees.
Stop creditor harassment immediately.
A key benefit of bankruptcy is something called the “automatic stay.” Once you file for bankruptcy, the court will issue an order called the automatic stay, which will temporarily halt all debt collection efforts on the part of your creditors.
Therefore, if certain abusive creditors have been constantly calling you and harassing you to pay your debts, they will have to stop immediately.
End wage garnishments
However, the automatic stay has additional benefits. For example, it will help stop most wage garnishments and prevent creditors from seeking to impose new wage garnishments on your monthly paycheck.
Therefore, if your wages had been garnished due to a debt you were unable to pay, filing bankruptcy will allow you to receive your full salary again.
Protect some of your most valued assets
Finally, the automatic stay can help you protect some of your most valuable assets, such as your home or car. For instance, if your house is about to be foreclosed on, filing for bankruptcy could temporarily stop the process, giving you the time you need to reorganize your finances so you can keep your home.
On the other hand, when filing for Chapter 7 bankruptcy, you won’t have to sell all your assets to get rid of your debts. You will have the opportunity to exempt some of your most valuable property from the process (including your home, primary car, clothing, furniture, work tools, and more), which means that they will not be affected in any way.
To learn more about how bankruptcy can help you protect your assets, consider consulting with an experienced bankruptcy attorney.
Discharge most of your debts
By far, one of the most important benefits of filing bankruptcy is discharging most of your unsecured debts through the process. In case you’re wondering, discharging debt means it’s gone forever. You won’t have to worry about paying it any longer since you won’t be legally obligated to do so.
Bankruptcy can help you eliminate the following debts:
- Credit card debt.
- Medical debts.
- Personal loans.
- Business debts.
- Auto accident claims (except those involving drunk driving).
However, bankruptcy won’t wipe out all of your debts. For example, secured debts may not be eliminated easily (unless you include them in your Chapter 13 bankruptcy repayment plan). Furthermore, debts such as alimony, child support, student loans, and certain taxes cannot be eliminated by bankruptcy.
Regain your peace of mind
Being overwhelmed by debt can be highly detrimental to your health. Stress, despair, and frustration will take a toll on your mental and emotional well-being. Before you know it, you may develop symptoms of anxiety or depression, significantly damaging your quality of life.
Therefore, filing for bankruptcy may not only be suitable for your finances but for your health as well. It will relieve you of the burden of dealing with all those debts and will be the first step towards regaining the peace of mind you so desperately need.
Work with a reputable bankruptcy attorney.
If you are thinking about filing for bankruptcy, you will need the help of a bankruptcy attorney in Irvine CA, such as KT Bankruptcy Lawyer, to avoid pitfalls during the process and secure the fresh financial start you are looking for.
The attorney will guide you every step of the way. At first, he or she will advise you on which type of bankruptcy you should file, depending on your financial situation. Then, the lawyer will help you organize all the necessary paperwork to ensure that your filing is successful. Finally, the attorney will be by your side at all times to protect your best interests.
Overall, the benefits of working with an attorney far outweigh the disadvantages. Therefore, you should consider calling a reputable attorney near you for a free consultation.
How can you find excellent attorneys near you?
Finding excellent attorneys near you is easier than ever. All you have to do is a Google search, and you will find dozens of local attorneys ready to help you during your bankruptcy.
That’s why top legal professionals invest in attorney SEO services to increase their rankings and appear at the top of Google results.
If you are an up-and-coming lawyer, you should consider working with a legal marketing agency to grow your law firm and achieve your goals.
Business name: KT – Tang & Associates Attorney AT LAW
Address: 9741 Bolsa Ave Suite 208, Westminster, CA 92683
Phone number: (855) 485-1991
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.