Bankruptcy Benefits

If you are thinking about bankruptcy, you are probably aware of the drawbacks. These can include your credit score taking a big hit, a lowering of as much as 200 points, as well as the difficulties inherent in having such a negative mark on your record. It may be difficult to get credit, loans, and mortgages for many years after declaring a bankruptcy. Even renting an apartment may be hard.

Are there any benefits to declaring bankruptcy? As a Tampa bankruptcy lawyer, my firm has helped countless individuals in the Tampa area go through the bankruptcy process and I can answer that question with certainty.

The Benefits

The answer is yes. The first benefit is that when you file for bankruptcy, your creditors and collection agencies will no longer be able to harass you. You will be free from intimidating phone calls and letters. If you have fallen behind on your mortgage or car payments, filing for bankruptcy will impose an automatic stay which stops collection actions such as foreclosures and repossessions. The bankruptcy court will appoint an administrator to handle your case and act as a liaison between you and your creditors. The stress and frustration of not being able to pay your debts will be over and you will be able to work your way back to a better and stronger financial position.

The goal of any bankruptcy case is to have the debtor's debts discharged. A bankruptcy filing eliminates most debts except those that are considered non-dischargeable, such as civil or criminal fines, like traffic tickets or drunk driving fines, child support obligations, alimony, most student loans, and most recent back taxes. Thus, you will be free from the overwhelming debt that got you in trouble in the first place while still being allowed to keep certain property. Your debts will be settled for less than you actually owe.

Bankruptcy allows you to make a fresh start in life. Having gotten out from under your debts, you can begin to rebuild your credit and your financial health with a new awareness of how to maintain them.

If you need help with a bankruptcy in the Tampa area, contact the Tampa Bankruptcy Attorney at the firm today!