A choice most of us try to avoid, bankruptcy is nevertheless a reality that has to be faced. What with the unemployment rate down; layoffs and pay cuts have become the new norm, where we see many individuals actually finding relief from debt by recognizing their inability to make payments.
Admitting you’re under-water is after-all the first step that’s taken towards recovery, coming second after debt counseling for bankruptcy that EmpireOne offers. Following are some benefits that declaring or filing for bankruptcy will provide you;
#1: You Can Keep Your Home
Most bankruptcy laws state that the home in which you reside is exempt from liquidation. There’s a condition however, that the equity stake be within the designated amount. For instance, if an individual’s home equity in Toronto is less than $50,000, the home will be deemed as exempt and cannot be taken away. However if equity in the home is more than what is their threshold, it will be subjected to liquidation.
#2: Your Creditors Will Stop Hounding You
Calls and surprise visits from creditors and collecting agents is a common occurrence, especially if you are late in debt repayment. By filing for bankruptcy, you will enter into an automatic stay (relief) period that will stop creditors from calling or contacting you in any way. The court penalizes the creditors and collection agents who break this rule.
#3: No One Has To Know
This is one of the most attractive benefits of filing for bankruptcy. While you may have had to face public humiliation and stigma before the decision to claim bankruptcy, that will be in the past. As for your financial information, it will remain private and the only time the filing would ever come out is when you’re asked for a credit history report, which is the norm for applying for a new credit card or loan.
#4: You Will Get a Financial Fresh Start
Your slate will be wiped clean after the debt is discharged or paid. This means, applying for new loans and credit cards will be again made easy although the interest rates won’t be desirable but the best way that can be taken in this situation is to operate under the terms and conditions set by the creditors. To learn more options when it comes to rebuilding credit, consider debt counseling for bankruptcy with EmpireOne.
While it will take some time (10 years) for the negative credit score to go away from the credit history, that’s enough time for you to rebuild the damaged credit. Learn how you can do so by getting in touch with the best credit counselors in EmpireOne today.