Due to negative stereotypes, many people believe bankruptcy is a last resort that should be avoided at all costs. With the right support, however, you may be able to derive powerful benefits from bankruptcy. At Lam Law Firm, our job is to assess your situation and determine what legal and financial strategy you need to overcome your current crisis. If bankruptcy is the best path for you, we can help you take full advantage of the laws that protect you, guiding you through the process every step of the way.
In the meantime, here is an overview of some of the biggest advantages of bankruptcy. For personalized information about how bankruptcy may affect your unique circumstances, please do not hesitate to get in touch with Attorney Lam today.
The Automatic Stay
The automatic stay is an order from the bankruptcy court that tells creditors to cease all collection activities. As soon as you file your petition, therefore, you will experience an immediate break from constant calls, letters, and even the threat of foreclosure or a lawsuit. The automatic stay can halt wage garnishment and bank levies, as well.
High Likelihood of Keeping Your Property
While Chapter 7 is nicknamed “liquidation bankruptcy,” the reality is that most people who file Chapter 7 can obtain a fresh start without losing anything they own. This is because both states and the federal government have exemption laws, which allow bankruptcy filers to exempt (i.e. protect) their assets from the liquidation process.
Chapter 13 also gives you the opportunity to catch up on delinquent mortgage or car payments. If you can do this in addition to making regular payments through the Chapter 13 plan, you can rescue your home and/or vehicle.
In as little as 3 months (if you file Chapter 7), the court can eliminate a portion or all of your debt. This means you may achieve permanent freedom from the medical bills, credit card debt, and other types of qualifying unsecured debt that has prevented you from achieving financial security. Once a bankruptcy court has discharged your debt, creditors are forbidden from attempting to collect it from you.
Opportunity to Rebuild Your Credit
When filed properly, bankruptcy is a fresh start. While bankruptcy will remain on your credit report for 10 years, the reduction in overall credit use will have a positive effect on your score. Furthermore, the impact that bankruptcy has on your credit will diminish as years pass. Ultimately, bankruptcy can give you the freedom you need to build solid financial foundations and a better future.
Obtain Personalized Counsel from Lam Law Firm
Bankruptcy will affect everyone differently. While it may work well for one individual, it might not be the right move for another. This is where Attorney Lam comes in. She can closely evaluate your situation, assess your eligibility, and recommend the most appropriate way forward. In every case she handles, her clients’ wellbeing is her top priority.