Nowadays, declaring bankruptcy are a common thing among business owners and individuals. It may carry a nasty cultural stigma, it may be a very positive choice for a number of indebted individuals to help them lighten their financial burden.
7 Possible Benefits of Bankruptcy
1. Allows for the "discharge" of most, if not all of your debts. This means that you are no longer legally obligated to pay the debts.
2. Prevents property from being repossessed, or it may require creditors to return property that was repossessed.
3. Stops the collection process. This means that creditors must stop attempting to collect on the debts.
4. Prevents you from having your utilities cut off, or if they are cut off, requires the utility company to restore service.
5. Stops/Prevents wage garnishment.
6. Halts the foreclosure process and gives you time to catch up on payments. This means you will not necessarily lose your house or mobile home.
7. Gives you the opportunity to dispute false claims from creditors who may be trying to collect more than what it owed to them.
While bankruptcy will allow for the discharge of a number of debts, others remain non-dischargeable according to federal regulation. Non-dischargeable debts include family support, student loans, certain types of taxes, and criminal fines. They are due to world financil crisis that we are experiencing these days.