Three Things To Know About How Filing Bankruptcy Can Help You

If you are having a hard time paying all of your bills, bankruptcy is a good way to get out from underneath of overwhelming debt. Eliminating debt is the biggest benefit to filing a bankruptcy case, but there are other advantages as well. Some of the positive effects of bankruptcy are well-known, while others are not as immediately apparent. For example, it is a pretty well-known fact that bankruptcy can eliminate or significantly reduce your debt load. But it is a lesser known fact that filing bankruptcy can actually help your credit score start to repair itself. This is because the debts you were not paying prior to filing a case were being reported as past due or delinquent, but after you file the notation will be that the debt has been discharged in bankruptcy. And while having a bankruptcy filing on your credit does not necessarily improve your credit score, it does bode well for you to have the information that you are behind on payments be removed from your report.

There are benefits as well, and here are three things to know about how filing bankruptcy can help you:

•         If there is a current lawsuit against you, for collection of a debt or to foreclose on your home, that case must stop. Any action to repossess your vehicle must also come to an end the minute you file a bankruptcy case..

•         Depending on the chapter of case you file under, you might be allowed to pay less for your car and at a lower interest rate to boot!

•         If your income has gone down due to a wage garnishment, that garnishment must stop. This will put more money in your pocket, allowing you to get current on your bills or to make your house payment without struggling.

We know that it sounds scary to have to file bankruptcy, but the benefits waiting for you are worth taking the step. We can help by looking at your finances and letting you know what type of case you qualify to file, and then prepare your case for filing. Once filed we stand by you every step of the way, so you feel comfortable about your decision. If you are experiencing financial difficulty, call our office for help getting your finances back on track.

For more information about how bankruptcy can help you, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.