Benefits of Bankruptcy
Unfortunately with today's economic climate, there are many individuals who are not capable of meeting their financial obligations and are in a bind, not knowing how to solve their predicament. Federal bankruptcy law was established for the objective of helping such individuals and corporations make a new beginning. If you or anyone you love is in a dire financial situation or is looking at the idea of bankruptcy, there are definite benefits for given circumstances. Some of them are noted here, but you should get in touch with an experienced Houston bankruptcy attorney at Stockton Law Offices to know all of the potential benefits which may be applicable to your case. We provide dedicated legal representation and advise clients in all bankruptcy matters.
The first thing to know is that many people are unwilling to look at bankruptcy because they feel a point of pride and do not wish to turn to that avenue of the law. However, it does not have to be seen only as an embarrassment, but an opportunity for making a more stable monetary future.
Anyone caught in a creditor harassment situation can feel stuck, not knowing how to end the calls and letters and bring relief. Bankruptcy can permanently end all such contacts by creditors. Depending on your unique case and which Chapter you qualify to have filed on your behalf, you can keep assets and reorganize your payments. The difference forms of bankruptcy can have their own benefits, such as:
- Chapter 7 - permanent end to creditor relationships through selling assets and discharging debts. If it was for a business, it ceases operations. You may keep certain assets under this type of filing.
- Chapter 11 - filed for mostly by corporations and individuals doing business, this type allows the debtor to keep the business and reorganize to meet obligations under court supervision.
- Chapter 13 - ends creditor contact for enough time to propose a plan and get it approved to meet debts and get them satisfied. This plan is ratified by the court, which in turn begins a 3-5 year time limit to pay them off.