The benefits of bankruptcy range from the practical to the emotional. Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can be a stressful experience, but the benefits of going through the process usually far outweigh the concerns involved in actually filing for personal bankruptcy.
One of the foremost benefits of bankruptcy is that your debts will be discharged. Getting rid of your personal debt and starting over with your finances can be an immense relief. When the hole gets too deep to dig your way out of, personal bankruptcy can be a viable and practical solution.
Rebuild Credit after Bankruptcy
After filing bankruptcy, you may worry that your credit score will never recover. However, this is simply not the case. Whether you file for Chapter 7 or Chapter 13, the new beginning that you’ll get with your credit will allow you to have the stability that you’ll need to start making strong financial decisions. It’s true that filing for bankruptcy won’t help your credit score right away, but increasing levels of debt are much worse for your credit over the long run than filing for bankruptcy is. This is because the more debt that you incur, the harder it is to pay off, so the hole just keeps getting bigger and bigger. One of the best benefits of bankruptcy is that you get to fill the hole in and start over. It’s not an easy task to rebuild credit after bankruptcy, but it’s nearly impossible to try and rebuild your credit when you’re buried in debt.
Stop Contact from Creditors
Another one of the excellent benefits of bankruptcy is that your creditors will no longer be able to contact you about past debts. When you have your San Diego bankruptcy lawyer file your petition for Chapter 7 or Chapter 13, the bankruptcy court will put a stay on all of your debts. This means that your creditors will no longer be able to contact you to try to collect on overdue bills. Once your bankruptcy case is over, it will be illegal for your creditors to harass you regarding debts that have been discharged through your bankruptcy. Speak to San Diego bankruptcy attorney, Scott Orona, to learn more about the specific rules of contact between debtors and creditors during and after a bankruptcy proceeding.
Great Emotional Relief
There are also a number of emotional benefits of bankruptcy. Uncontrollable debt can weigh heavily on a couple, a family, or an individual. Unpaid debts create stress and friction that filing for bankruptcy can help alleviate. A fresh start with your finances could also mean a fresh start with your relationships.
Discuss the Benefits with a San Diego Bankruptcy Attorney
Learn more about the benefits of bankruptcy by contacting experienced San Diego bankruptcy attorney, Scott Orona. Attorney Orona offers free one hour consultations for prospective clients who are interested in learning more about filing for personal bankruptcy in Southern California. With more than 20 years of experience as a bankruptcy lawyer, Scott Orona has handled all types of bankruptcy proceedings and can offer knowledgeable counsel regarding your unique case. Call 619-306-7627 today to arrange an initial consultation with Attorney Orona's San Diego bankruptcy law firm.