Benefits of Filing Bankruptcy

How Can Bankruptcy Help You With Your Debts?

The bankruptcy system has been created by Congress in order to give people relief from debts they cannot afford to repay. The benefits of bankruptcy include both short-term relief from immediate worries and long-term relief from these debts.

I’m Ivan Trahan, an experienced bankruptcy lawyer based in Temecula, California. Over more than 35 years, I have helped thousands of clients obtain the benefits of bankruptcy. Contact me to schedule a free consultation to discuss your options.

Stop Creditor Harassment and Debt Collection

The most immediate benefit of filing bankruptcy is a feature called the automatic stay. As soon as you file bankruptcy, your creditors are forbidden from contacting you or trying to collect on any debts you owe. If they do so, they may face penalties from the bankruptcy court.

Even before you file, hiring me to represent you can stop creditor harassment because you can refer your creditors to me. They cannot call you once they know you have an attorney.

In addition to stopping creditor harassment, the automatic stay puts all pending lawsuits, foreclosuresand repossessions on hold. If your wages are being garnished, this must stop, and you may be able to get back some previously garnished wages.

Permanently Discharge Debts You Cannot Afford

If your bankruptcy filing is successful, any eligible debts will be permanently discharged, meaning you no longer owe them and your creditors cannot try to get you to pay them. This can happen within months in Chapter 7 or at the completion of a Chapter 13 payment plan.

While the automatic stay is temporary — only lasting as long as you are under the protection of the bankruptcy court — discharge provides the benefit of permanent debt relief.

Make a Fresh Start and Rebuild Your Credit

The long-term benefit of bankruptcy is the opportunity to make a fresh financial start. Once your bankruptcy case is over, you can begin rebuilding your credit so you can get access to better financing options. Many people are able to obtain a better credit score within two years.

For many of my clients, bankruptcy creates positive opportunities to build for the future. To learn more about what I can do to help you obtain the short-term and long-term benefits of bankruptcy, contact metoday.