4 Reasons Why Filing for Bankruptcy Can Be a Good Thing

Posted on March 15, 2017 at 12:00pm by
Petition for bankruptcy for coronavirus

Our society attaches a stigma to bankruptcy, seeing it as a personal failing. This stigma is unrealistic, and it is unfair to people who can benefit from bankruptcy. Unexpected medical emergencies, divorce or a slowdown in business can happen to anyone. Filing for bankruptcy can be a good thing if debts are putting your most prized assets at risk.

4 Benefits of Filing Bankruptcy

  1. Stop collection attempts: Creditors must cease collection attempts after you file for bankruptcy. This includes collection agency phone calls, wage garnishments and attempts to foreclose your home or seize your vehicle.
  2. Protect your business: Chapter 11 bankruptcy can be a lifesaver for struggling business owners. By filing for Chapter 11, you can reduce debts while remaining in control of operations. You get the chance to protect your business while finding new ways to become profitable.
  3. Improve your financial footing: One misconception is that bankruptcy destroys your finances. Bankruptcy discharges debts and frees up funds that can be spent towards improving your finances in other areas. Filing for bankruptcy can be the first step in becoming financially stable again.
  4. Save important assets: Bankruptcy exemptions and other mechanisms can help you keep your home or vehicle while discharging burdensome debts.

These are only a few examples of how bankruptcy can help people struggling with difficult financial situations. For example, we recently wrote a blog discussing how bankruptcy can protect your retirement savings.

Why You Should Not Wait to File for Bankruptcy

One of the most common regrets people have after filing for bankruptcy is that they did not do it sooner. If you are facing constant phone calls from collection agencies, wage garnishments or foreclosure, let our attorneys help.

The Kansas City bankruptcy attorneys at The Sader Law Firm can walk you through the options that will best meet your needs. We also encourage you to check our website to see if you qualify for $0 up-front Chapter 13 filing.

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