Most people mistakenly think of bankruptcy as a bad thing. However, bankruptcy can potentially save you money in a few different ways. Even though you may have to pay to hire an attorney, filing bankruptcy is still a good deal. Filing bankruptcy can help you deal with your debt and save you money. Here are some of the ways a bankruptcy can help you save money.
In a chapter 7 bankruptcy your debts are wiped out, or discharged. This can save you money by eliminating or reducing the total amount you owe. Certain debts like student loan, taxes, and child support are not discharged, but unsecured debts such as credit cards, medical bills, etc. can be. Even if not all debts are eliminated a chapter 7 can still greatly reduce the total amount you owe.
Filing a bankruptcy also can also save you money by protecting you from your creditors. Filing a bankruptcy prevents your creditors from taking collection action against you. This means you are protected from garnishment, bank levies, repossession, etc.
In a chapter 13 bankruptcy, even though you are making payments, the total amount paid is usually reduced. A chapter 13 is like a government sponsored debt consolidation. Over the course of three to five years you make a monthly payment based on what you can afford to pay. There are no interest, penalties, or fees. A chapter 13 restructures your debt into a more manageable payment plan often reducing the amount you will pay overall.
Finally, bankruptcy provides you with a financial fresh start. By discharging or restructuring your debt, funds are freed up to focus on saving and rebuilding financially. If you are considering bankruptcy, speak to a bankruptcy attorney about how bankruptcy can hep you.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
