The Benefits of Bankruptcy
Advantages of Filing for Bankruptcy
Many Orange County residents are suffering severe financial stress and are in need of real solutions that can provide them with substantial debt relief. Some individuals struggle just to make minimum payments and borrow from credit cards to pay other debt. With this method, their situation simply becomes more difficult with each passing month. At one time, filing for bankruptcy may have had a social stigma, but those times are long past. Many of your friends, neighbors and associates may have already pursued this option for a fresh financial start.
The main benefit of bankruptcy is that it provides individuals with exactly that– a fresh start.
The general benefits of bankruptcy include the following:
- Enjoy an automatic stay (stops creditors from collecting)
- Restructure or discharge debts
- Create a new payment plan
- Relatively fast court process
- Allows you to rebuild finances and credit
The benefits of bankruptcy will certainly differ depending on your personal circumstances and on whether you file for Chapter 7 or Chapter 13. Chapter 13 bankruptcy allows the borrower to pay back bills over a three to five year period at a manageable rate. Chapter 7 bankruptcy allows those who cannot pay their bills to discharge most of their consumer debt. Under this chapter, the debtor will no longer owe bills such as credit cards, medical bills, personal loans and other unsecured debts.
Both forms of bankruptcy also carry the extra benefit of allowing you the time to resolve financial problems involving a foreclosure on your home. As soon as the bankruptcy is filed, there is an "automatic stay" on all creditor actions, allowing our firm to engage in negotiations with your lender if a property is involved. If you are under a crushing debt load and cannot manage your current financial state, it is in your best interest to discuss the situation with a qualified Orange County bankruptcy lawyer.
Bankruptcy Lawyer in Orange County
For those who are facing heavy stress associated with debt, the benefits of filing for bankruptcy will likely far outweigh any negative consequences. At 1st California Law, we strongly believe that our clients come first. How you manage the process of filing for bankruptcy is extremely important, and ensuring that you get every possible benefit is our focus.
We can work closely with you so that you have a clear picture of not only the many benefits of bankruptcy, but also any possible consequences as you move forward. Contact our firm today for a free case evaluation.