Benefits to Filing Bankruptcy

Lerner & Rowe Law Group
Benefits to Filing Bankruptcy

As in real life, filing for bankruptcy protection includes the good, the bad, and the proverbial ugly. Ugly is what happens when you don’t have good legal advice from an experienced bankruptcy attorney. Our Phoenix bankruptcy attorneys are here to explain the good, the bad, and how to avoid the ugly side of bankruptcy.

The Automatic Stay

When you file for bankruptcy protection, the good begins immediately upon filing, as you gain the benefits of the automatic stay. An automatic stay is like a temporary injunction stopping your creditors from further debt collection activity. 

The automatic stay STOPS:

  • Telephone calls, letters, emails, and other forms of communication from creditors and debt collectors
  • Lawsuits by your creditors
  • Wage garnishments
  • Repossession of your property
  • Foreclosure of your home 

The automatic stay will NOT stop:

  • Criminal proceedings 
  • Government tax audits
  • Establishing, modifying, or collecting child support or spousal support (alimony) or establishing paternity. 

The automatic stay may also be limited if you filed another bankruptcy case within the past year. Contact our helpful Arizona bankruptcy lawyers today to learn more about the good, the bad, and how to avoid the ugly side of the automatic stay.  

Retaining Your Property

Regardless of the type of bankruptcy case filed, you are entitled to claim exemptions in your property. If an asset is exempt, it is protected in bankruptcy

Sometimes a portion of the net equity in an asset is protected, not the entire asset. Your exemptions are determined by where you have lived for the past 2 to 2.5 years.  Have questions about the good, the bad, and the ugly side of retaining your property during bankruptcy? Contact the experienced bankruptcy attorneys at Lerner & Rowe Law Group today.

Credit Score 

While your credit score is likely to bottom out when you file for bankruptcy protection (and a bankruptcy filing will remain on your credit report for 7 to 10 years),  there is some good news for your credit score—many individuals see their credit scores begin to improve after filing bankruptcy. Need a new or new-to-you vehicle but can’t get one? File bankruptcy and almost immediately, you’ll be able to buy another vehicle!

Discharge Debt

The discharge is the golden goose of bankruptcy. Entry of the Order of Discharge means that you have no more personal liability to repay you discharged debts. 

This means that your legal obligation to repay discharged debts is canceled. This is not just the good, but the GREAT! The experienced bankruptcy attorneys at Lerner & Rowe Law Group are here to explain the great of filing for bankruptcy protection.

24/7 Free Bankruptcy Consultations

Our experienced Phoenix bankruptcy lawyers have a thorough knowledge of Arizona law and debt consolidation processes, and are here to help get you back on track towards financial freedom.

Late night, mid-day, or early morning—contact our bankruptcy team today!  Call 602-667-7777, check out our convenient LiveChat feature, or submit an online form now. Consultations are absolutely free!

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.