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Benefits of Bankruptcy

Filing for bankruptcy is a big step. It allows you to take more control over your current and future finances, but it can also negatively affect your credit. Considering all the pros and cons of bankruptcy before filing can ensure you’re making the right decision for your situation. Call First America Law at 1-800-695-7674 for a free case evaluation and the answers to your questions.

Benefits

Speedy Debt Resolutions

Most bankruptcy proceedings are fast and free of complications. In fact, Chapter 7 often takes less than a year, and Chapter 13 is typically completed in 3-5 years. Once your debt has been discharged, you can begin to move on with your life and start rebuilding your credit.

Credit Score

Bankruptcy can have a pretty negative effect on your credit score, but skyrocketing debt, collection activities and judgments can also have negative consequences for your credit. The difference is that bankruptcy wipes the slate clean all at once so that you can start over.

The best way to rebuild your credit score is through fiscal responsibility. When using credit cards, pay them off every month so that you’re not carrying a balance and racking up expensive interest charges.

Other Considerations

While many people believe that bankruptcy means losing everything, you will typically be allowed to keep some of your property. The law allows for exemptions for your home, vehicle, some household goods, life insurance policies and some wages. Each state has its own list of exemptions as well, which can help you protect more of your property.

The ins and outs of bankruptcy can be complicated, and there is no one right answer for every person. If you’re struggling under a mountain of debt, schedule an evaluation with one of our experienced bankruptcy representatives. We can help you weigh the pros and cons to find the best solution for your needs. Call First America Law today at 1-800-695-7674a to learn more.