Filing for bankruptcy is not an easy decision. Knowing if bankruptcy is the right choice for you can be challenging. Our Colorado bankruptcy team of lawyers discusses the benefits of filing for bankruptcy and dispels some common myths about bankruptcy. If you are struggling with debt, it is essential to speak with a qualified lawyer to help you decide if bankruptcy is right for you.
Benefits of Filing for Bankruptcy
Many benefits come with filing for bankruptcy. Let’s explore a few below.
Prevent Repossession, Foreclosure, and Utility Shutoffs
A bankruptcy filing can prevent creditors from taking action against you, which is one of the most significant benefits. Filing for bankruptcy can give you the time to catch up on your payments if you face repossession, foreclosure, or utility shutoffs.
Get a Fresh Start
Another benefit of filing for bankruptcy is that it can help you get a fresh start. At its core, bankruptcy is designed to give people a fresh start. If you are struggling with debt, filing for bankruptcy can help you get out from under that debt and start over.
Put an End Collection Efforts
After filing for bankruptcy, an automatic stay goes into action. A court order prevents creditors from pursuing collection actions against you. This includes wage garnishment, harassment, and lawsuits.
Common Bankruptcy Myths
Now that you know the benefits filing for bankruptcy can provide let's bust some common myths about the process.
"Bankruptcy is bad for your credit"
This is one of the most common myths about bankruptcy. While it is true that bankruptcy will stay on your credit report for seven to ten years, it can actually help you rebuild your credit.
"You will lose all of your possessions if you file for bankruptcy"
This is not true. Certain assets are exempt from bankruptcy. Such as:
- Your home
- A reasonable amount of household furnishings
- One vehicle
- Tools of your trade
"You will never be able to get a loan if you file for bankruptcy"
Again, not true. While obtaining a loan after filing for bankruptcy may be difficult, it is not impossible.
"You Don't Need A Bankruptcy Lawyer"
While you are not required to have a lawyer to file for bankruptcy, it is highly recommended that you do. An experienced bankruptcy lawyer can help you navigate the process and ensure that your rights are protected.
Let Wagner Law Office, P.C. Guide You Through The Process
If you are struggling with debt, bankruptcy may be your best option. Don't let common myths about bankruptcy stop you from pursuing financial freedom. At Wagner Law Office, P.C., our experienced bankruptcy attorneys can help you through the process and ensure your rights are protected.
If you have questions about how bankruptcy can help you, don’t hesitate to contact us today through our website or give us a call at (303) 536-5124 to schedule a consultation.