Filing Bankruptcy Can Be An Investment In Your Future

June 19, 2012 by  Filed under: Bankruptcy 

Many times the reasons that people these days are filing bankruptcy has nothing to do with financial irresponsibility, but more to do with the bad economic climate that our nation has been facing. High unemployment has gripped the country, medical costs and insurance continue to rise, fuel prices are skyrocketing, food prices continue to climb steadily. This is a recipe for disaster for many struggling families. A serious unexpected illness or accident, divorce, or sudden loss of employment can be devastating for the family’s finances. When one’s income has been decreased or even eliminated, keeping up with the mortgage and monthly bills is just about impossible. In cases such as this the individual was not careless about their finances but just ran into unforeseen financial difficulties. This is where filing bankruptcy comes in.

Bankruptcy was created as a legal means for honest individuals to eliminate overwhelming debt and gain a fresh financial start. As a matter of fact, most people who file for bankruptcy choose this an option to regain control of their finances, not because they are trying to avoid paying their bills. A benefit of filing bankruptcy is that it immediately provides a halt to all creditors and collectors and prohibits them from pursuing the individual or their property through the automatic stay. The automatic stay is a legal order that stops the creditors from collecting or attempting to collect any debt that the individual owes to them. This offers peace of mind as the debtor no longer needs to worry about the harassing phone calls or dreaded collection letters in the mail. All other proceedings such as wage garnishments, judgments, lawsuits, and foreclosure will also stop. The bankruptcy code also has exemption laws to benefit the debtor. This allows the debtor to retain certain property or assets simply by claiming them as exempt under the state or federal exemption laws. In many cases an individual will not lose any property at all when filing bankruptcy due to the exemption laws.

The other main benefit of filing bankruptcy is that it offers a fresh financial start. Simply stated, this means that the individual will no longer be buried under mountains of burdensome debt. In essence the individual has the opportunity to rebuild their credit and their financial life over again with a new beginning being debt free or close to it. The feeling that comes from lifting oppressive debt from an individual’s shoulders is indescribably freeing. The insurmountable stress an individual is under when in financial crisis can affect their health and family life. Filing bankruptcy can eliminate the debt and the tremendous stress that individuals face and truly put them on the road to recovery, both financially and emotionally. If you are facing overwhelming debt you should speak to a bankruptcy attorney to discuss your options. Filing bankruptcy might be a smart investment in your future.

The author is a professional that formed FilingBankruptcyPros.Com which provides information for debtors considering filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy attorney.

Article Source:
http://EzineArticles.com/?expert=Lisa_Michelle_Jones

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