- Asset protection
- Chapter 13
- Eliminating second mortgages
- IRS tax payment options
- Lien release
- Tax penalty relief
- Credit card debt relief
- Debt negotiation
- Foreclosure prevention
- IRS tax settlement
- Loan modification
- Short sales
- Tax resolution
- Chapter 7
- Deft relief
- IRS relief
- Levy garnishment
- Rebuild credit
- Debt collector harassment
- Wage garnishment
Contact Benner & Weinkauf today and let’s take a look at your situation. We’ll be able to find the best option for you.
What Happens if I Declare Bankruptcy?
You may be worried about what will happen if you declare bankruptcy. So here are some answers… The first thing that will happen is the “automatic stay.” It essentially stops bill collectors in their tracks. They’re no longer allowed to harass you. It also stops any other collection activities, including garnishments of wages and money being taken out of your checking accounts. It gives you room to breathe.
Next, you have to go to court and file the proper paperwork. You should know that if you file for Chapter 7, many of your assets may be used to pay your creditors. However, you’ll also be able to keep certain assets. The intent of bankruptcy is not to leave you destitute but to enable you to make a fresh start.
If you have more assets that you want to keep, and if your income is above a certain limit, you may have to file for Chapter 13. This involves a payment plan over 3 to 5 years.
How Much Does It Cost to File Bankruptcy?
Considering that you file bankruptcy because you’re broke, you may think that it’s a bit ironic that you have to pay a filing fee as well as some other fees. Then again, most things do cost money. And if the fees cause you real hardship, you may be able to pay them in installments.
In addition, there may be other costs, especially if you hire legal representation. Just keep in mind that having a competent attorney by your side will probably save you a much larger sum of money in the long run. After all, it will likely result in a successful bankruptcy and the discharge of your debts.
Another item in the “cost” column is that you may have to give up some of your assets when you file for bankruptcy. They will be liquidated and the proceeds distributed to your creditors. Just remember what you’re getting in return… relief from debt and a chance at a new start.
Is Filing for Bankruptcy Worth It?
Filing for bankruptcy is always a tough decision. Will it be worth it? Consider that your life may be a constant struggle with bills you can’t pay. You’re probably struggling to take care of your family and can’t even afford some necessities. In that case, your quality of life may well go up once you file for bankruptcy.
You may also be worried about your credit score. True, bankruptcy has a rather detrimental effect on your credit score. However, you’ve probably lived through years of financial struggles, along with constant late fees and possible collection activities. Those may well have lowered your credit score to the point where bankruptcy might actually raise it, if not immediately then at least fairly quickly, once your debt has been erased.
The biggest benefit comes from an increased quality of life, though. After being hounded by creditors for months and maybe even years, you will be able to answer your phone without worrying about rude creditors harassing you.
The best bankruptcy lawyer in New Bedford
is Benner & Weinkauf, P.C. and they serve all of New Bedford.
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