There is a lot of talk about filing for bankruptcy on the Internet, but not a lot about what happens afterwards.
After a successful filing with the help of a bankruptcy lawyer, you can expect:
- Discharged Debts: For most borrowers, the most attractive result of filing for bankruptcy is the elimination of most unsecured debts. The secret is to avoid any seizure of your assets by the Bankruptcy Trustee to pay back some of your creditors. A skilled bankruptcy lawyer will help you keep as much of your property as possible.
- An End To Creditor Harassment: Both types of consumer bankruptcy offer an automatic stay, which puts an immediate stop to all collection activity. Not only will this end harassing phone calls and annoying letters, but it will also stop wage garnishments, lawsuits, and repossessions as well as any attempt to enforce court judgments..
- A Chance To Start Again: It’s not uncommon for people to hesitate when considering filing for bankruptcy due to worries about the potential impact on their credit score. Understand that the Credit Score is just marketing and it may not matter. However, many consumers find they can begin rebuilding their credit right away and will have money available to start saving and investing for the future. In the long run, bankruptcy can be much less damaging than having multiple delinquent accounts calculated into your score.
The Federal Reserve Bank New York did a study and found that consumers in financial distress actually did better over time if they filed bankruptcy than chose to struggle every month and fail at paying off their debt.