People often assume that by declaring bankruptcy, they lose important assets like their homes, cars, savings, and retirement funds. That simply is not the case. In fact, it's the opposite!
Bankruptcy can help you keep what's important to you and rebuild your finances.
Let's take a peek at what I feel are the top 3 benefits to bankruptcy:
1. Automatic Stays. You receive an "automatic stay" from the bankruptcy court on the day that you file for bankruptcy. The Stay stops lawsuits, repossessions, and foreclosures during your bankruptcy case. That way, you can keep your property and are better able to focus on reorganizing finances.
2. Exemptions. Exemptions allow you to keep your existing property. Yes, that means that by declaring bankruptcy, you DO NOT automatically lose your assets. In fact, under the Federal Exemptions, we can protect up to $45,000.00 of equity in your home, up to $1 million of your retirement savings, up to $20,000.00 of money in a savings or bank account, keep your car, and still eliminate your debt.
3. Discharge Orders. Discharge orders, like Automatic Stays, are issued from the Bankruptcy Court. These orders keep creditors at bay by stating that you've made your best efforts to pay back any outstanding debt, and that these creditors can no longer collect those against you again. Yes, that means you are free from your debt and can start rebuilding your credit.
On average, it takes 2-4 years to rebuild credit. I've seen many clients purchase and home or new car at a regular interest rate just 2 short years after filing a Chapter 7 bankruptcy.
Just because you find yourself in a poor financial situation doesn't mean that all hope is lost. In fact, the opposite is true: a poor financial situation presents the perfect opportunity to recover, rebuild, and reinvest into your financial future.
If you'd like to discuss bankruptcy or non-bankruptcy options as a means to rid yourself of debt, please give me a call at 412-395-6001. I offer no fee consultations to my clients and can meet with you in any one of our four offices in Pittsburgh, Greensburg, Latrobe, or Altoona.
Managing Bankruptcy Attorney of The Debt Doctors at QuatriniRafferty