Bankruptcy law can be complicated, but it doesn’t have to be with a Bankruptcy attorney by your side. In fact, bankruptcy is a legal process that allows people with debts to get a fresh start by filing for bankruptcy. The courts will decide which debts are discharged and which are not, as well as what happens to your property.
By filing for bankruptcy, bankruptcy attorneys by your side will help you understand your options and how bankruptcy can be beneficial to you.
Here are the top benefits of filing for bankruptcy in New York:
- Bankruptcy provides a fresh start.
The process of filing for bankruptcy allows people with debt to get a fresh start. In most cases, debts are discharged, meaning all payments owed are erased from your credit report. This can help you get back on your feet financially. People often feel bad after filing for bankruptcy, but this shouldn’t be the case. Filing for bankruptcy eliminates most of the debt and people can go back to their lives without worrying about credit report issues or other financial hardships.
- Eliminates the legal requirement to pay creditors
When a person files for bankruptcy, the court can determine which of the debts are eligible to be discharged. If there are certain creditors you don’t want to pay, filing for bankruptcy is an option that allows you to eliminate those debts.
- Stop lawsuits
Filing for bankruptcy stops any kind of legal action against you. Let’s say you have a car loan and your car is repossessed by your lender. If the lender keeps pursuing legal action against you, you might be forced to pay the loan in full or risk going to jail for having unpaid debt. Filing for bankruptcy also stops lawsuits from creditors who are trying to recover missed payments.
- Stop wage garnishments on salary
Filing for bankruptcy can help stop wage garnishments. In many cases, your creditors can take up to a certain amount from your paycheck or other income sources. Filing for bankruptcy can help keep creditors from taking money from your checks.
- Stop harassment at work or home
If you’re in debt, filing for bankruptcy can help stop harassment from creditors at work or home. For example, a creditor may call your boss and demand payment because you’re behind on payments. But filing for bankruptcy will keep creditors from taking your wages or harassing you with phone calls and paperwork.