Why Filing for Bankruptcy Might be the Right Option for You
There are different reasons for declaring personal bankruptcy. Although it all stems from unmanageable debts, why this takes place differs in each case. Some of the common causes of uncontrollable debts include job loss, divorce, and medical bills.
Although no one wants to file for bankruptcy, some people have no other options. If you are in this situation, you don’t have to feel terrible about the prospect of filing for bankruptcy. As long as you have a reliable Charleston, WV bankruptcy attorney on your side, you can pick yourself up. The following are reasons why filing for bankruptcy may be a good option:
It Can Wipe Out Debts
When your bankruptcy petition is approved by the court, a lot of your debts can be wiped out. Both Chapter 7 and Chapter 13 bankruptcy lets you get rid of your debts. In Chapter 7, you sell any of your assets and have your debt discharged while in Chapter 13, you agree to a debt repayment plan that can cancel your excess debt after you meet the plan.
It Can Stop Creditors from Harassing You
If you are living with serious debts, you are probably dealing with creditors chasing you up for different debts. Once your attorney has filed your bankruptcy petition, creditors can’t legally contact you for your debts.
It Can Help You Get a Good Credit Score Again
Sure, a bankruptcy filing can affect your credit score and stay on record for ten years. But, it can provide you with the chance to recover your credit score over the long-term. For instance, the majority of those who have filed for bankruptcy saw their credit score increase by around 100 points the first year after filing. The best way to make this happen is to get a secured credit card. And when you learn from your mistakes, you can begin to cautiously borrow and repay on time to recover your credit rating.
Keep Ownership of your Possessions
Bankruptcy laws let you keep your house as a bankruptcy exemption and other important assets like your vehicles can be protected. This is something you would not expect if creditors close in on you. Therefore, filing for bankruptcy could help you keep most of what you own.
With bankruptcy, you don’t have to sell your home or car, move to another state, or look for a new job. Employers can’t discriminate against you because you file for bankruptcy.