4 Major Benefits of Filing for Bankruptcy Attorney
Bankruptcy attorney is one of the efficient and most affordable options to get out of debt by stopping debt collectors and even conserving assets. If you are in a difficult financial situation, filing for bankruptcy could be the light at the end of the tunnel.
Consult with a bankruptcy attorney, who will introduce you to the options available to you. Economic uncertainty, stagnant growth, loss of employment and a reduction in our financial horizon. These are just some of the repercussions that this pandemic has had on our daily lives bankruptcy attorney.
This forced reorganization of the domestic economy often prevents us, for example, from meeting a loan commitment. The debt begins to increase and the legal consequences appear. Ultimately, people are strongly affected.
Fortunately, some changes in the legislation have focused on this problem. In 2014 the New Bankruptcy Law came into force, which aims to care for natural persons. However, so that they can declare bankruptcy like companies, having the possibility of solving their debt problems under the protection and protection of the law.
The bankruptcy laws have the following benefits.
- Natural persons will be able to eliminate their debts, thus having the possibility of getting back up after a problematic financial episode.
- A very important point, people will be able to exit the DICOM registry, thus cleaning their financial records.
- The debtor will have more tools and benefits to pay off the debt, from the extension of terms to flexible payment of interest.
- As we mentioned above, the payment terms are extended to the benefit of the debtor. What used to last two years will now last between 4 and months depending on the characteristics of the case.
- The debtor may be financially protected, preventing the financial institution from increasing interest or seizing assets.
Let’s dive into the five major benefits of filing for bankruptcy.
Benefit# 1: Eliminate Your Debts
The most apparent benefit of filing for bankruptcy is eliminating debt entirely or at least reducing it dramatically. This usually occurs about three months after filing for Chapter 7 Bankruptcy.
It also includes medical bill debt, payroll loans, and other unsecured debt, secured debt, and some taxes.
Benefit# 2: Stop Collection Actions
An incredible benefit that most people are unaware of is the “automatic stay”. The provision that the Bankruptcy code offers as protection between creditors and debtors.
Sounds interesting, right?
Benefit# 3: It Saves Money
When filing a claim, the plaintiff must pay a state fee, which can reach several thousand euros in case of large claims.
Suppose the creditor’s claim does not cause a dispute, and the creditors do not have to finance the bankruptcy proceedings themselves.
Benefit# 4: It Saves Time
When filing a claim, a dispute can last for years. Only after this will the creditor have the opportunity to proceed with the execution of the judicial act.
In case he/she has not, than it can harm the interests of creditors. However, the question of recognizing the relevant transaction or action as invalid (that is, cancellation) may arise.
Hope this article is helpful to understand the benefits of filing for bankruptcy attorney
See More Relevant Article Click Here