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Why Bankruptcy is Secretly Advantageous

You can experience personal bankruptcy because of many reasons. Maybe you lost your job or have decreased income. Maybe you have unexpected expenses such as medical bills and property maintenance. Maybe you are just negligent with your credit card use. Whatever the cause may be, it doesn’t change the fact that you are experiencing financial difficulty and considering bankruptcy.

Bankruptcy has a negative reputation, but it shouldn’t be that way, because it can actually be advantageous.

The website of the Bradford Law Offices, PLLC has listed the different kinds of bankruptcy you can file and the benefits of each. For the common folk, there are generally two kinds of bankruptcies available – chapter 7 and chapter 13. They have their own advantages, but below are the general advantages of filing for any kind of bankruptcy.

  • Automatic stay – If you file for bankruptcy, you will trigger an automatic stay, meaning that your creditors will stop pursuing you for debt collection, including pestering you with phone calls and letters, suing you, and repossessing your properties.
  • Debt discharge – In bankruptcy, you can also trigger debt discharge, meaning that some of your debts, particularly those that are dischargeable, such as personal loans and utility bills, are forgiven.
  • Financial flexibility – The most obvious advantage of bankruptcy is that it helps you to recover some of the financial flexibility you have lost because of your debt. This can take on many forms, such as the debt discharge that has been mentioned earlier, and others like payment plan rescheduling and consolidating and reorganizing current debts.
  • Anti-discrimination – If you are filing for bankruptcy, there is also no need to worry that you will lose your main source of income – your job. This is because your employers are not legally allowed to discriminate against you, even in the aspect of financial situation.