How Claiming Bankruptcy Can Improve the Quality of your life
Updated: Sep 3
Filing for bankruptcy comes as a big decision for a lot of people. It usually occurs due to events or circumstances that cause considerable upset and distress. Bankruptcy is your federally mandated right to go back to "GO" and start over. It's your chance for a "Do-Over".
RLG Legal group will guide you through the bankruptcy process, reducing your stress level while helping you to get out of a seemingly bottomless hole, and leading you back to a more relaxed and pleasant life.
Benefits of filing for bankruptcy include:
a. Single mechanism for dealing with all of your debt problems
We address all of your debt problems in the course of your bankruptcy. You will have the opportunity to decide what to do with certain debts (usually secured debts) and when your bankruptcy is completed, there will be no loose ends nagging at you.
b. Cancellation of Unsecured Debt
Unsecured debt can be reduced, or even eliminated entirely, through the bankruptcy process. Unsecured debts are any debts that arise from credit that was extended to you without requiring a security interest in your assets in return. Credit cards are one example of unsecured debts. Unsecured debts may also include medical bills, utility bills and similar bills. We will identify and classify all of your debts as part of our pre-bankruptcy analysis.
c. Secured Debts
Secured debts are debts that arise from credit that was extended to you in return for a security interest in your assets. The mortgage on your home is one example of a secured debt. If you want to keep your secured asset we can arrange it. If you're better off financially to get out of your secured debt, we can use bankruptcy to eliminate any amounts you still owe - including interest and penalties.
d. Stop Creditor Harassment
Late and missing payments are usually followed by endless calls from collections. Sometimes the collection agent is pleasant, other times the collection agent is rude and insulting. The stress of dealing with collection agents is but one more stressful problem to add to the already long list of stressful problems piling up on your shoulders.
Once we file your bankruptcy, either by the chapter 7 or chapter 13, the creditors are required to stop all attempts to collect. All attempts includes phone calls, emails, letters - any attempt to collect at all must stop.
e. Stop foreclosure of your home
Filing bankruptcy invokes the Automatic Stay on all attempts to collect a debt. The Automatic Stay immediately stops any attempts to foreclosure on your home no matter what stage of execution the foreclosure is in. We have successfully prevented foreclosures from taking place through filing bankruptcy even on the day of the foreclosure.
f. Stop repossession of your car
The Automatic Stay applies to all creditors, including the creditor who is trying to repossess your car. As with foreclosures, we have been quite successful at preventing repossessions of vehicles even at the last minute.
g. Enhance your Financial Management Skills
Most people, after going through the process of filing for bankruptcy, learn to improve their financial skills so they do not fall into the same pit they have just been dug out from.
Not only does the bankruptcy court require you to complete an approved financial management program but, working with us through the bankruptcy process, will enhance your understanding of your finances and focus your outlook on long term goals that will help to prevent your back-sliding into financial debt ever again.
The Afterward of Filing Bankruptcy
a. Credit Score
Most bankruptcy clients come to us with very low credit scores and filing for bankruptcy does not help. However, rebuilding your credit is entirely feasible and can be very successful in only a few years. Whereas, we do not recommend or encourage taking on more debt as a general rule, done correctly, a credit card is an extremely good way of repairing your credit rating.
We can provide you with guidelines that are designed to help you re-establish your credit rating while minimizing the risks of putting you back under the credit burden that we just got you out of. By following the guidelines, you will accelerate recovery of your credit rating.
b. Buying a House
Post bankruptcy, buying a house may be difficult, though not impossible. We have worked with many clients to help them improve their success of purchasing a home after their bankruptcy. We can help you make home ownership a reality as well.
Bankruptcy is a temporary process, with a definite start and end. Bankruptcy provides a fresh start, a chance to go back to "GO" and start over, a chance to get out from under the debts that were sucking the life out of you. The Bankruptcy process also provides you both a sense of clarity and a bright light at the end of the tunnel.
So, if you are in the Phoenix and Scottsdale Arizona area and you are in need of top notch and affordable bankruptcy attorneys near you, look no further than RLG legal Group. They provide the best bankruptcy services around, as well as other services that you might need as well.
Click Here to contact RLG Legal Group today.