Many times, the word bankruptcy is spoken with a negative tone and viewed as a process that is only reserved for those who are in the worst financial situations. One does not have to be in dire straits to take advantage of bankruptcy, and while bankruptcy may not be socially accepted, it is a program that is designed help people and turn around their financial situations. The process of bankruptcy can be a lengthy one, but there are many advantages of filing bankruptcy. One should consider retaining Bankruptcy Lawyers Granite City IL when wanting to take advantage of bankruptcy.
A common misconception of bankruptcy is that it will wipe out all debt that one has, but there are some debts that are not inclusive including the debts owed from a divorce settlement, alimony payments, or past due child support. Also, income taxes owed within the last three years and student loans cannot be exempt from bankruptcy. Lastly, any court cost or DUI judgments one has incurred will not be eliminated through the bankruptcy process, but any other bills one has can be, and will be, eliminated by filing bankruptcy.
One major advantage of filing bankruptcy is the position of automatic stay in which one will be as soon as they file bankruptcy. Automatic stay is a petition that stops all collection activity and lawsuits against a debtor. Automatic stay does not eliminate one’s debt, but it does suspend proceedings to collect, which will eliminate the stress that comes every time a collector tries to contact you. When a person is in automatic stay, collectors are not able to contact the debtor in any form including sending letters, calling one’s residence, garnishing wages, or even proceeding with suing the debtor.
Bankruptcy Lawyers Granite City IL are professionals who can explain the numerous advantages of bankruptcy and help to start the process. Bankruptcy is a wonderful investment because the process may seem long, but it is really quite fast considering it only takes around a year to complete. Then, the debtor can start rebuilding their credit immediately.