Three Long And Short Term Benefits To Filing Bankruptcy
Bankruptcy has helped thousands of people get out of debt, and on the road to financial recovery and it can help you too. If you have more debt than you can manage, considering bankruptcy is a good idea. Bankruptcy offers many benefits, some of which you feel right away and others with more long lasting impacts. Filing bankruptcy allows you to eliminate a good portion of your debt, which means you have more money each month to pay for necessities. When high interest rate credit card balances are zeroed out, there is more money left over each paycheck to devote to the things your family needs. Having the financial flexibility to pay all of your bills and have money left over relieves an enormous amount of stress, and can also help you learn how to budget so financial emergencies can be avoided in the future.
Benefits of Bankruptcy
Three long and short term benefits to filing bankruptcy include:
- The instant you file you are under the protection of the automatic stay. The automatic stay is a legal provision in the bankruptcy code that prohibits your creditors from contacting you as soon as your case is filed. This means all of the collection calls and letters have to stop, and if there are any pending lawsuits against you related to one of your debts, that lawsuit also has to stop.
- You do not have to keep making payments on the debts you intend to discharge when your case is filed, and this can give you an immediate infusion of much needed cash.
- Once your case has discharged, all of the debt that was included in that discharge is no longer due. This means you do not have to worry about how to make the minimum payments on all of your credit cards or other unsecured debts for years to come.
Instant Relief From Bankruptcy
The immediate benefits of the automatic stay, and the ability to stop spinning your wheels with small payments to your lenders sets you up for a solid financial foundation down the road. So when you file for bankruptcy, you get instant relief and also reap the benefits for years. When you are able to put aside money for an emergency because you no longer have to pay overwhelming debt, your financial future is brighter.
For more information about the benefits of bankruptcy, contact us at http://www.sacramentobankruptcyattorneys.com/. We will help by coming up with solutions that work for you.