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Four Reasons to Be Thankful for BankruptcyThe holiday season is a time of year when people reflect on what they are thankful for. Family, friends and good health are often at the top of people’s lists. You are likely not thankful for financial circumstances that make filing for bankruptcy necessary, but you can instead be grateful for the bankruptcy laws and process that will help you get out of debt and on the path towards financial recovery. Here are just four reasons you may be thankful for bankruptcy:

  1. You Receive an Automatic Stay: One of the most stressful parts of being in debt is dealing with aggressive creditors and debt collectors. You may receive frequent communications, demanding repayment and threatening legal action and repossession. The first thing that filing for bankruptcy does is put an automatic stay on all debt collection efforts. That means no more phone calls or letters. If creditors are in the process of filing a lawsuit or foreclosing on your home, those actions will be put on hold.
  2. You Have Several Property Exemptions: Chapter 7 bankruptcy repays your creditors by selling your assets and distributing the proceeds. Fortunately, there are exemptions that will protect properties from being sold. In Texas, exemptions are pretty generous, which means in almost every case that your home, cars, jewelry, furniture, retirement, and pension plans are protected.
  3. You Can Discharge Your Debts: Once you have finished the bankruptcy process, most of your unsecured debts will be discharged. This means that you are clear of the obligation to repay any of these creditors. For secured debts such as home mortgages, the creditor may be able to repossess the secured property. However, if you want to keep the secured property, you can reaffirm your debt and keep making your payments on the remaining amount on the debt.
  4. U.S. Bankruptcy Laws Are Favorable to Consumers: There are many countries around the world that do not have bankruptcy laws or systems in place. Others have bankruptcy laws for businesses but not for consumers. Without a personal bankruptcy system, consumers in these countries have no protection against creditors if they become insolvent and default on their debts. The U.S. has federal bankruptcy laws that make the process consistent across the country, rather than having a process that may greatly vary by state.

Contact a Denton County Bankruptcy Lawyer

Consumers across the U.S. are fortunate to have experienced bankruptcy lawyers available to help them through the process. A Frisco, Texas, bankruptcy attorney at The Page Law Firm can discuss the advantages of filing for bankruptcy. To schedule a free consultation, call 214-618-2101.

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The Short-Term and Long-Term Benefits of BankruptcyBankruptcy may have a negative stigma for people who do not understand what the process means. Bankruptcy is a solution to your debt problems, not a symptom of them. You file for bankruptcy to stave off creditors and ultimately clear yourself of eligible debts that are causing you stress and threatening your financial security. When filing for bankruptcy, you should understand that there are immediate and long-term benefits.

Immediate Benefits

You will immediately notice the effect of filing for bankruptcy because it will enforce an automatic stay on your creditors. This means an immediate stop to:

  • Persistent phone calls and letters about repayment;
  • Looming litigation by your creditors;
  • Garnishment of your wages by the IRS and student loan lenders; and
  • Imminent foreclosure or repossession of your properties.

The automatic stay gives you time to assess your financial situation and how you wish to proceed with the bankruptcy process. It is difficult to concentrate on making those decisions if you are worried that the bank is about to foreclose on your home.

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National Association of Consumer Bancruptcy Attorneys State Bar of Texas
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