The Benefits of Bankruptcy
While the decision to file for bankruptcy is never easy, it is important to know that the process is designed to help you. It is not meant to be a punishment, and your life will not harmed as a result of filing. If anything, your life may become easier after bankruptcy, as you will have eliminated most or all of the liabilities that were causing you financial hardship.
There are several primary benefits that bankruptcy offers, and they include:
- Freedom from debt - If you have filed for Chapter 7, your unsecured debts, such as credit cards, medical bills, and personal loans will be discharged, freeing you from the obligation of paying them. If you have filed for Chapter 13, you will pay towards your debts according to a payment plan. Once the plan has been completed, your debts are discharged.
- Halting collection actions - When you file for bankruptcy, the court institutes an "automatic stay," which prevents creditors or debt collectors from pursuing any further action against you. If your property is in danger of being repossessed, or your home in danger of foreclosure, an automatic stay will prevent that from happening while you navigate your bankruptcy proceedings.
- Obtaining a fresh start - Once your bankruptcy is over, you will be able to rebuild your credit over time, potentially reaching a level of financial health that is higher than before you filed for bankruptcy.
- Discretion - You are entitled to keep your financial information, and your bankruptcy, private. Unless you are applying for a new loan or credit card, you are not obligated to tell anyone that you have filed for bankruptcy.
As a federally designated debt relief agency, the experienced attorneys at Big Easy Law Group can help you file for bankruptcy protection.
Exemptions are an integral part to both Chapter 7 and Chapter 13 bankruptcy. In some Chapter 7 cases, individuals are required to sell certain property or assets in order to gain funds to repay creditors. If you are filing for Chapter 7, you can utilize property exemptions to protect some or all of your assets from sale.
In fact, most people do not lose any property in filing for Chapter 7, so the odds of being able to keep all of your possessions are in your favor. If you are filing for Chapter 13, exemptions will be used to determine how much you will have to pay back to unsecured creditors over the course of your payment plan.
Big Easy Law Group possesses knowledge of bankruptcy that can only be gained through helping hundreds of individuals through the process. We have provided personalized assistance to clients in all types of bankruptcies, including Chapter 7 and Chapter 13 cases, and we have become adept at obtaining the best possible results.
If you are considering bankruptcy, a LaPlace bankruptcy lawyer at our firm can consult with you to determine what exemptions you may be able to take advantage of. Should you choose Chapter 7 bankruptcy, our goal will be to protect as many of your assets as possible, if not all of them. Should you decide on Chapter 13, we will work towards finding exemptions that will make your payment plan as affordable and as brief as possible.
Bankruptcy exemptions allow you to protect property and assets from sale, provided that their dollar value does not exceed a certain limit. For example, the automobile exemption in our state allows up to $7500 of equity in a motor vehicle. If your vehicle is worth $7500 or less, it will not have to be sold as part of your Chapter 7 proceedings. Different property types have different value limits assigned to them, so it is best to consult with an attorney if you are intent on maximizing your available exemptions.