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What Are the Benefits of Bankruptcy? | What to Know

The word “bankruptcy” does not have many positive connotations. In fact, when many people hear the word, they often think of their favorite store going out of business, or someone facing financial struggles. While bankruptcy may sound daunting, there are actually a lot of benefits when it comes to filing for bankruptcy. Read on to learn more about the potential benefits of bankruptcy.

What Are the Benefits of Bankruptcy?

Save your home: By filing for Chapter 7 or 13 bankruptcy, you may be able to stop foreclosure on your home.

Discharge your debts: Chapter 7 bankruptcy allows you to discharge many of your debts, including credit card debt and medical bills. Once your debt has been discharged, the lender can no longer pursue payment.

Faster loan modifications: Through the Loss Mitigation Program and Procedures, you may be able to stop foreclosure on your home and quickly obtain a loan modification

Strip a second mortgage: When filing for Chapter 13 bankruptcy, you may be able to discharge your second mortgage if your house is worth less than your first mortgage.

Lower your car payment: If you have owned your vehicle for a certain amount of time, bankruptcy may allow you to reduce your loan to the value of your car.

Catch up on payments: You may be able to keep your home, car, and other secured assets by catching up on late payments through Chapter 13.

Rebuild your credit: After you successfully file for bankruptcy, you can start rebuilding credit by paying your remaining and future bills on time. Many individuals who file for bankruptcy are able to secure credit soon after the filing.

Bankruptcy may be your best option when it comes to handling your financial troubles. If you are interested in learning more about the process and the potential benefits of bankruptcy, contact our firm today to speak with an experienced attorney. We understand that bankruptcy can feel overwhelming, but we are here to walk you through the process each step of the way.

Contact

Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.