Benefits of Bankruptcy
If you are like many San Diego residents suffering from the stress of mounting debt, facing a threatened bank foreclosure of your home, or just overwhelmed by your debts, you may want to start considering your debt relief options. There are many benefits designed to help you get rid of your unwanted debts and get a fresh start for you and your family.
What Are the Benefits of Bankruptcy?
The most common benefits of bankruptcy are that it can help you get out of debt by eliminating your credit card debt, erase a second mortgage or home equity debt encumbering your home, and help you rebuild a car loan. Also, contrary to what many people think, you can rebuild your credit and actually many people will have an improved credit score within 1-2 years after they file (depending on how high or low their score is to begin with.)
Eliminate Credit Card Debt
One of the most commonly utilized benefits of bankruptcy is that, depending upon the Chapter that you qualify to file under and your income and other factors, you can eliminate your credit card debt in its entirety. Many of our clients qualify to have all of their debt associated with credit cards and collection accounts completely eliminated. If your income is very high, you may have to repay some or all of your credit card debt through a debt repayment plan.
Erase a Second Mortgage
Another one of the most often used benefits is that, depending upon the value of your home and if you have a second mortgage, you may be able to wipe out a 2nd mortgage or home equity loan encumbering your home. By removing a 2nd mortgage that is against your home, when your property value goes up down the road, you will enjoy more equity in your home.
Make Your Car More Affordable
Less known but very powerful benefits involve making your car more affordable. If you have a car loan, then depending upon the value or your car and when you took out your car loan, you can rebuild your car loan, resulting in a lower principal balance, a lower monthly payment, or both. The two principal ways to do this are: (1) entering into a Reaffirmation Agreement with more favorable terms than the existing repayment terms; and (2) redeeming your car for its fair market value through the redemption process. Learn more about the protection available to help you keep your car and lower your payments.
Get Out of Debt
Bankruptcy can be a very responsible and effective way for you to get out of debt fast and get a fresh start for you and your family. So you have to ask yourself, "do I need a fresh start?" If you answered yes, then you should talk to an attorney and review your debt relief options.
One of the main benefits and the ultimate goal of your filing is that you will receive a discharge of your debts. A discharge prevents people from contacting you and eliminates your personal liability for all of your debts that can be eliminated under the law.
No More Debt
At Bankruptcy Legal Center, our mission is to help you get rid of your unwanted debts and get a fresh financial start. Learn more about the advantages and benefits available to you, so that you can get a fresh financial start and start living with no more debt.
Bankruptcy can also be an effective means for helping you begin to rebuild your credit after bankruptcy San Diego! Continuing to make late payments and carry large balances has a severe and negative impact on your score. Many of our clients in San Diego, California, are surprised to learn that within 1-2 years after filing and obtaining a discharge, their credit score substantially increases. Read more about how to rebuild your credit score.
Increase FICO Score
One of the most overlooked benefits is that you can actually increase your credit score. With proper guidance from an experienced lawyer you can dramatically increase your FICO score after bankruptcy San Diego! You'll soon be on the road to a more secure financial future. Read more about to increase your FICO score.
Free Lawyer Consultation
If you have any questions about the benefits of bankruptcy, contact Bankruptcy Legal Center in San Diego, California to set up a free lawyer consultation with a San Diego bankruptcy lawyer. Talk to a lawyer today, and discover all of the benefits available to you.