Benefits of Filing for Bankruptcy

man filing a bankruptcyIf you are in serious debt, it can seem like there’s nowhere to turn. However, bankruptcy can be a good option if you can’t see any other way to pay back your creditors. There are certain benefits to filing for bankruptcy that you should know.

Stop Creditors and Debt Collectors from Harassing You

Legally, when you file for bankruptcy, your creditors and debt collectors must immediately stop trying to contact you. An automatic stay is instituted and they cannot continue calling you, making surprise visits to your home or garnishing your wages to recover the money you owe. After your bankruptcy case is complete, you will also get a permanent discharge injunction that permanently prohibits collectors and creditors from harassing you.

Your Credit Score Can Improve

Filing for bankruptcy can actually help to improve your credit score. This often occurs thanks to the elimination of your previous debts after you get a bankruptcy discharge. Your debt to income ratio gets better, which can help you to gradually rebuild your credit. The end result may be a considerably better credit score.

More Disposable Income

After filing bankruptcy, you can make use of your disposable income. This is money that comes due to certain debts being forgiven. Debts that don’t include alimony, child support, some taxes and student loans are not discharged, but disposable income from other debts can be used to pay them off.

Can Help Build Your Savings

Filing for bankruptcy can help build your savings due to your debts being eliminated. You can use this money toward anything from an emergency to your eventual retirement.
If you are in Alabama and are considering filing bankruptcy, you are not alone. You need the assistance of a skilled bankruptcy attorney Mobile Alabama based. The Loris Law Firm can help you. If you need a bankruptcy attorney Mobile AL has the best Alabama bankruptcy lawyer to help you get started with your case.