Benefits of Filing Bankruptcy

Benefits of Filing Bankruptcy

Individuals who qualify for bankruptcy are not aware of the benefits that they will get.  Although bankruptcy is a primary reason for affecting your financial being for the long term, it is still the best thing to do if necessary. Here in Calgary, it is a great solution to avoid total losses since businesses here go toe-to-toe with each other.

bankruptcy filing benefits

But before anything else, always take note that not all individuals have the same situations. So thinking if you must file a bankruptcy case or not can be very tricky. You’ll need to weigh the benefits and consequences of bankruptcy filing.

Moreover, it is a good idea to get an expert regarding the subject matter. Regarding that, Bankruptcy Calgary Alberta is the best place to seek help regarding bankruptcy. This will help you in having a clearer insight on what to expect on your bankruptcy filing.

The Benefits

To give you an insight into the possible benefits bankruptcy filing could bring, we will have a quick rundown of them.

Debt collection will be temporarily stopped

Once a person files bankruptcy, the court will order a suspension of debt collection until the completion of the case. This only means that you’ll spare yourself from the annoying calls of debt collectors.

Not only that, but you’ll also stop the risks of getting lawsuits due to your debts. Most importantly, you’ll spare yourself from experiencing property repossession.

However, it does not mean that you’ll escape from criminal proceedings, tax audits, child support cases, etc. It only entails that you still have responsibilities to fulfill. The bankruptcy case must not be your reason to escape from those responsibilities.

Let’s say that you have an existing filing of a bankruptcy case, you can request for an extension by a petition on the court of the initial automatic stay. On the other hand, if you have filed multiple times in a span of one year, it is impossible to have an automatic stay unless you have the court’s explicit order.

Dischargeable debts

With this benefit, you can waive your responsibility to repay some of your debts. Some great examples are personal loans, medical and credit card bills.

Retaining ownership of your property

If an asset is exempted then you do not have to bother yourself thinking of getting your property forfeited. Exemptions have a significant role in Chapters 7 and 13 bankruptcies. Some of them have their limits in terms of the assets’ amount for protection. However, there are times wherein exemptions are given on some assets that are usually with priceless sentimental value such as wedding rings.

Improvement of Credit Scores

Debtors usually improve their credit scores after a bankruptcy filing. By eventually moving on with a clean slate and start reconstructing their credit, the debtor is put on a good standing even bankruptcy records stay for a decade.

Conclusion

Filing bankruptcy at a very undesirable timing can worsen your financial standing. Just like filing a bankruptcy very early might indicate that a property has gotten out of your hands. Your filing might also be categorized again on another bankruptcy chapter if that’s the case.

Nevertheless, if bankruptcy is the only choice that you can have, we can’t take away the fact, that it has benefits. You shall consider its benefits against its downsides to weigh if filing is really the right thing to do.

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