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What Are Some Advantages of Filing for Bankruptcy?

When you think of bankruptcy, most likely, frightening and worrisome thoughts come to mind. However, it’s important to remember that bankruptcy is a tool provided to help you, not hurt you.

While there are often negative consequences of filing for bankruptcy, doing so can also provide many benefits that can help you get out of financial trouble.

Read on to learn more about the good things bankruptcy can do for you.

Advantages of Filing for Bankruptcy

Here are some of the greatest benefits of filing for bankruptcy:

  • Tax liabilities older than three years are eliminated
  • Bankruptcy may be better for your credit than missed debt payments, defaults, repossessions, and lawsuits
  • You may file for a Chapter 13 bankruptcy if you end up in financial trouble again before you are able to qualify for Chapter 7 again
  • Debt collectors cannot use aggressive tactics in an attempt to get you to repay your student loan debt
  • Allows you to have a fresh start
  • You will no longer be able to receive harassing phone calls from creditors, letters, repossessions, canceled credit cards, declined charge authorizations, and lawsuits related to your debt
  • Certain lenders specialize in lending to “bad risks” customers (even though this is an unfair term used by lenders since you’ve taken major steps to solve your financial challenges)
  • Arkansas state exemptions allow many of your possessions to be exempt from bankruptcy

We’re Here to Help

Filing for bankruptcy can be a very scary and stressful time, but our team can help ease the burden of it all. Don’t hesitate to reach out to our office right away with any questions you may have about the bankruptcy process and our law firm.

Contact the experienced attorneys at Caddell Reynolds Law Firm by calling (800) 889-6944 or filling out an online contact form today.

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