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Benefits of Filing Bankruptcy

Filing for bankruptcy is not failure.  In fact, it is a positive step in your financial future because by eliminating debt and getting a fresh start you are no longer overwhelmed by your credit card bills, medical bills, car payments, collection cases and other financial concerns.  Often, bankruptcy is better than debt settlement. If you have further questions about bankruptcy, you should contact a skilled Indiana bankruptcy lawyer for more information. Here are specific benefits of filing bankruptcy that you will experience.

1. Eliminate Debts in As Few As Three Months

When filing for a Chapter 7, your debts can be completely discharged within three to six months of the filing date. Chapter 7 is the best option when there are high amounts of debt with a low chance of being able to pay back creditors. This option is best for those who wish to move forward with their lives within a short period of time.

2. Creditors Can’t Contact You While Your Case Is Pending

As soon as your Bankruptcy petition is filed your creditors must stop contacting you. They must also stop any pending legal action that they are taking against you. In other words, your creditors are no longer able to pursue you until after your court case is resolved. Additionally, any foreclosure proceedings that have been started must be stopped while your case in court.  Any wage garnishments, must stop.  Basically, you will be free from your creditors.

3. Obtain a Repayment Plan That You Can Afford

Chapter 13 bankruptcy is known as a reorganization of debts, rather than discharging them completely. Although creditors will still need to be repaid, minimum monthly payments will be lower than your debt payments are. In some cases, a bankruptcy filer may only be required to make payments for a specific period of time. The benefits of this is that usually if debts are unable to be paid in full after 60 months, they will be forgiven.

4. Bankruptcy Gives You a Fresh Start and a New Beginning Financially

When you are finally out of debt, one of the largest weights of your life is lifted off your shoulders. You will be able to begin putting money in a savings account or even start an investment plan. You will begin to rebuild your credit and learn discipline with use of credit.  It allows you to start fresh and pay your bills like “everybody else” (which is not exactly accurate but I know this is how you feel).

5. Much of Your Property Is Exempt from Creditors

If you have been considering using your 401k or IRA to pay your bills, you should file for bankruptcy instead. Your retirement accounts cannot be taken by the Trustee. Your house may also not be used to help repay your debt. Anyone who is going through foreclosure could file for bankruptcy in an effort to keep their house.

There are a few benefits to filing for bankruptcy, which can actually help you with your debts. Bankruptcy can offer a fresh start to pursue financial independence.  Contact Jason Wischmeyer at jason@wischmeyerlaw.com or 317-429-0210 today to discuss the best option for you.   During your free consultation with Bankruptcy Lawyers Indianapolis Jason Wischmeyer your financial situation can be reviewed to determine your best possible option.

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