What are the Advantages of Filing for Bankruptcy?

Filing for bankruptcy is a significant decision that will have lasting consequences on your financial life. Before you decide to file for a  Chapter 7 or Chapter 13 bankruptcy, it is wise to consider all of the advantages and disadvantages of filing for bankruptcy. One of the best ways you can evaluate whether you should file for bankruptcy is to discuss your case with an experienced bankruptcy lawyer. We will discuss some of the key benefits of filing for bankruptcy below.

Getting a Fresh Financial Start

When you file for bankruptcy, the bankruptcy court will stop your creditors from harassing you to collect debts. After you file a bankruptcy petition, the bankruptcy court will issue an automatic stay that will prevent creditors from trying to collect your debt. The purpose of an automatic stay is to afford you time so you can regroup financially and repay your debts. You can begin rebuilding credit and start over financially.

Discharge Eligible Debts

Another crucial advantage of filing for bankruptcy involves the discharge of your eligible debts. This is why most people file for bankruptcy. After you file for a Chapter 7 bankruptcy, you will be released from the requirement to repay any unpaid debts. The bankruptcy trustee overseeing your case will sell your qualifying assets and distribute the proceeds to your creditors through a liquidation process. In Chapter 13 Bankruptcy, you will make monthly payments for three to five years. Once the bankruptcy process is complete, your eligible debts will be discharged.

Help With Home Mortgages

If you are behind in making mortgage payments, you can give yourself some extra time to live in your home by filing for bankruptcy. Even though a Chapter 7 bankruptcy wants to raise your mortgage, it can give you more time to restructure your finances. Filing for bankruptcy can give you the time you need to discuss your case with an experienced lawyer who will help you develop a strategy focused on your goals and needs.

Keeping Your Exempted Property

Many people are understandably concerned that they will lose all of their property, including their home and vehicle, if they file for bankruptcy. However, under federal bankruptcy law, debtors are allowed to keep certain types of property. Several different categories of property will be protected from creditors once the debtor files for bankruptcy. Typically, motor vehicles up to a certain value, household furnishings, some clothing, life insurance, pets, family bibles, and portions of earned wages are exempted from the bankruptcy process.

Contact a San Diego Bankruptcy Lawyer Today

Facing financial difficulties can be frightening and frustrating. However, you can start the process of getting out of debt once and for all by filing for bankruptcy. Contact Bankruptcy Law Center today to schedule your free initial consultation to discuss your case with one of our San Diego bankruptcy lawyers. 

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Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
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Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
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Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

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Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

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Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
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Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
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Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

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Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
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Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

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Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy