When it comes to filing bankruptcy, most Americans are pretty daunted by the sound of it. The general idea is that when you are filing bankruptcy, you are letting go of your assets and properties. Now, this is an entire misconception. Filing bankruptcy, even though it is often the last resort for you, can be the best option for you when you are looking for a fresh start. It will wipe out the majority of your debts, especially the ones that are unsecured, including medical bills, credit card bills, and so on, and help you find a chance to stabilize your finances as our Pittsburgh bankruptcy lawyer thinks.Types of Bankruptcy
Given your unique financial situation, you will need to file for the right chapter for bankruptcy. While Chapter 7 bankruptcy can eliminate the majority of your debts, it might need you to liquidate some of your assets and properties while giving you a fresh start. However, the process is pretty fast, 3-6 months, which might not be always what you are looking for.
On the other hand, when you are filing for Chapter 13 bankruptcy, you get to keep your assets and properties. But at the same time, you get a longer time, 3-6 years, to take care of your debts that remain unchanged. Some of the debts will be discharged while you will get a restructured payment plan for the rest of your debts. Consulting an experienced Pittsburgh bankruptcy lawyer will help you understand what option will be the best suitable one for you.Advantages of Filing Either Chapter 7 or Chapter 13 Bankruptcy
No matter which chapter you are choosing to file for, there are some of the common advantages that both of these bankruptcy chapters have to offer you. For the basic idea, the Pittsburgh bankruptcy lawyer offers you the following insights.
- A majority of your creditors are probably hounding you with phone calls or sending the bills asking you to pay immediately. This can be a traumatic episode for you as well as your family. This persuasion will immediately stop if you file for bankruptcy.
- Your credit card can be often the reason for your mounting debts. And if that is so, then you are probably counting thousands of dollars as the interest. With bankruptcy, this will stop too.
- Your finances are completely messed up right now. With the bankruptcy filing, you will get some relief as your unsecured debts will be eliminated. And if you file chapter 13, then you will get a repayment plan that will help you stay on the right track.
- Filing bankruptcy cannot eliminate the secured debts like car loans or mortgages. But the amount of the payment can be reduced.
- If you are a business owner, you are probably dealing with judgments, bank garnishments, and wage attachments. These responsibilities will go away if you file for bankruptcy.
- As you won’t have to pay unsecured debts like high medical bills or credit card bills, bankruptcy will minimize your expenses. This will help you keep the payment of your mortgage or car loan regular.
- Often extreme debts can take a toll on your utility bills resulting in completely shutting them off. When you file for bankruptcy, you won’t have to do that.
- Most importantly, your credit score will be improved. If you are filing for chapter 7, once the process is over, you just need to pay all your bills at the right time. For chapter 13, you will have to follow the repayment plan. And this will be the start of your better credit report.
So, now as you know about these advantages of filing for bankruptcy, come to us at Pittsburgh Bankruptcy Law Group. Discuss your financial situation with our Pittsburgh bankruptcy lawyer to find a solution.