Bankruptcy is known for helping people gain a fresh start. A new year’s resolution many consumers make includes getting out of debt. Even if you don’t believe in making resolutions you may see getting out of debt as one your financial goals you want to achieve in the new year. Many review their options for how they will tackle their debt after the holidays. Yet, if bankruptcy is an option you are considering there are a few things you can do to get started in managing your debt, even if you choose to file later on.
In determining if bankruptcy can help you gain control of your finances there are two common questions consumers ask to help them learn whether filing is an optionn including what debts does bankruptcy eliminate and what benefits does bankruptcy provide?
Bankruptcy eliminates a number of debts including credit cards , personal loans, medical bills and more. The filing may help eliminate debt associated with foreclosure , repossession and debts sent to third-party collections. Bankruptcy offers several benefits including putting a stop to debt collection attempts from creditors and stopping pending foreclosure procedures. The filing can help stop vehicle repossession, utility disconnection and sheriff sale.
Another important benefit of filing bankruptcy includes obtaining protection for assets and personal property through state and federal exemptions. The filing provides consumers with protection under rules and regulations of the federal government. This also allows consumers to exercise their rights in handling their debts when creditors are not willing to work with you. If you are considering bankruptcy discuss your situation with an experienced bankruptcy attorney.