What Are the Advantages of Filing for Bankruptcy?

Posted on November 12, 2019 at 11:31am by
Kansas City Bankruptcy Attorneys

Are creditors harassing you day and night? Are you losing sleep worrying about paying your mortgage or car loan? When your debt has spiraled out of control, it may be difficult to know where to turn for help.

Fortunately, for Kansas City individuals and businesses, there may be a solution. Bankruptcy is an option that provides debt relief while giving you the tools you need to rebuild your future. 

Is Bankruptcy Right for You?

Bankruptcy may be the best choice in many situations. If any of these apply to your situation, it may be time to consider filing for bankruptcy.

  • Lawsuits filed against you
  • You receive collection letters or harassing phone calls from creditors
  • You open new credit cards to pay off old credit cards
  • You only make minimum payments on debt
  • Your home is in foreclosure or about to be in foreclosure
  • Past due income tax problems
  • High unpaid medical bills
  • Financial problems caused by divorce
  • Your business is failing and you are facing lawsuits

Advantages of Filing for Bankruptcy

Most people believe that bankruptcy will ruin their credit. Others believe that they will lose all of their assets if they file for bankruptcy. Fortunately, these beliefs are untrue.

With bankruptcy, individuals get a chance to start over and rebuild their lives free of debt. They can move into the future without the burden of their past mistakes. In fact, there are many advantages to filing for bankruptcy, including:

  • Bankruptcy can stop home foreclosure
  • Bankruptcy can stop wage garnishment
  • Bankruptcy can stop car repossession
  • Bankruptcy can help you manage your student debt
  • Bankruptcy can make old tax debts disappear
  • Bankruptcy gets you started on rebuilding your credit
  • Bankruptcy stops harassing phone calls and letters from creditors

While there are many advantages to filing bankruptcy, it is important to know that bankruptcy does not erase all debts. Child support and alimony obligations, for example, are not dischargeable in bankruptcy. However, there are ways your attorney can help you gain control over those debts and manage them better in the future.

Will I Qualify for Bankruptcy?

To qualify for either Chapter 7 or Chapter 13 relief, you must receive credit counseling at least 180 days prior to filing.

To qualify for Chapter 13 relief, you must have less than $394,725 in unsecured debts and secured debts of less than $1,184,200. These amounts are subject to changes, so it is best to speak with a bankruptcy lawyer before proceeding. You must also have sufficient income to complete a three to five year repayment plan.

Individuals who run a business may prefer to avoid liquidation by filing a petition under Chapter 11. This includes those who run a corporation, partnership, or sole proprietorship.

A qualified Kansas City bankruptcy attorney will protect your assets during bankruptcy and help you plan for the future. An attorney will review all of your options with you, so you can determine if bankruptcy is right for your situation.

Contact Our Kansas City Bankruptcy Attorneys

Bankruptcy is not an option most people or businesses consider. Yet, it may be the best answer. Filing bankruptcy can give you a clean slate and help you start over. However, not everyone qualifies for bankruptcy.

To learn more about your bankruptcy options, contact the Kansas City bankruptcy attorneys at The Sader Law Firm. Call us at (816) 281-6349 or fill out our confidential contact form to schedule an initial consultation. We are here to help you gain financial stability and safeguard your future.