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3 immediate benefits of filing for bankruptcy

On Behalf of | Jan 15, 2021 | Bankruptcy

There should be more to life than the constant struggle to make ends meet. If you feel like you are living from paycheck to paycheck, you are far from alone. In fact, the average American has more than $90,000 in debt. 

Fortunately, with a bankruptcy filing, you may have a convenient way both to put your financial affairs in order and to lower your stress levels. While there are many advantages to seeking bankruptcy protection, you are likely to notice three soon after your filing. 

1. The automatic stay

Arguably, the automatic stay is the most significant benefit of seeking bankruptcy protection. When you file for bankruptcy, your creditors must immediately stop all collections activities. During the automatic stay, debt collectors may not harass you. You also do not have to worry about losing your car to repossession or your home to foreclosure when the automatic stay is in effect. 

2. Debt relief

Bankruptcy is a form of debt relief. If you opt for Chapter 7 bankruptcy protection, you may be able to discharge many of your outstanding debts. With Chapter 13, you and your creditors formulate a repayment plan. Either way, your bankruptcy filing proactively addresses your debts. 

3. A fresh start

If you are barely keeping your head above water, it may be difficult to focus on your financial future. Because your bankruptcy filing takes care of much of your outstanding debt, you have the opportunity to make a fresh start. 

After your bankruptcy process concludes, you can stick to a budget or make other choices that put you on the path to a solid financial future.