Are There Benefits to Bankruptcy?
Creditors consistently calling demanding payments, receiving delinquent letters, the stress of not being able to pay your bills, and falling deeper in debt will drive people to seek relief anyway they can.
Most people view bankruptcy as a last resort.
When an individual or business depletes all their financial resources the only choice left is to file a bankruptcy.
Filing for a bankruptcy is not an easy choice to make but in certain financial situations it becomes a necessity.
Filing a bankruptcy does have benefits.
The benefits of filing a bankruptcy are as follows:
In a Chapter 7 (No Asset Case), the discharge will happen rather quickly because the debtor does not have any assets which need to be liquidated.
In a Chapter 7 (Asset Case), the discharge will take longer.
The trustee will have to liquidate the debtor's assets and then distribute the proceeds accordingly.
This process can take time and the discharge will not be as fast as a No Asset Case.
In a Chapter 13, the discharge may take anywhere from 3-5 years.
This depends on the repayment plan in the bankruptcy filing.
The important thing to remember is to educate yourself on the bankruptcy process.
The decesions you make during the bankruptcy will impact your financial future.
Learn from poor decisions made in the past, make better choices in the future, and do not be afraid to take action on new ventures.
The worst thing a person can do is not take action on an idea because of fear.
The fear of failure is real, preventing most people from achieving their true potential.
Do not view past mistakes as failures but as opportunities to improve.
There is a light at the end of the tunnel.
Once you reach it continue to look forward and do not dwell in the past.
Thank you for reading.
Most people view bankruptcy as a last resort.
When an individual or business depletes all their financial resources the only choice left is to file a bankruptcy.
Filing for a bankruptcy is not an easy choice to make but in certain financial situations it becomes a necessity.
Filing a bankruptcy does have benefits.
The benefits of filing a bankruptcy are as follows:
- A bankruptcy can discharge most debts.
- A bankruptcy invokes the automatic stay which stops creditors and collection agencies from all collection activities.
- A bankruptcy can stop the foreclosure process.
- A bankruptcy filing can help a person retain their home.
- A bankruptcy gives a person the ability to pay back their debts and not accrue additional interest.
- A bankruptcy gives a person a fresh start.
In a Chapter 7 (No Asset Case), the discharge will happen rather quickly because the debtor does not have any assets which need to be liquidated.
In a Chapter 7 (Asset Case), the discharge will take longer.
The trustee will have to liquidate the debtor's assets and then distribute the proceeds accordingly.
This process can take time and the discharge will not be as fast as a No Asset Case.
In a Chapter 13, the discharge may take anywhere from 3-5 years.
This depends on the repayment plan in the bankruptcy filing.
The important thing to remember is to educate yourself on the bankruptcy process.
The decesions you make during the bankruptcy will impact your financial future.
Learn from poor decisions made in the past, make better choices in the future, and do not be afraid to take action on new ventures.
The worst thing a person can do is not take action on an idea because of fear.
The fear of failure is real, preventing most people from achieving their true potential.
Do not view past mistakes as failures but as opportunities to improve.
There is a light at the end of the tunnel.
Once you reach it continue to look forward and do not dwell in the past.
Thank you for reading.
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