Friday, August 12, 2016
Three Benefits Of A Bankruptcy Discharge
Filing bankruptcy can be confusing, because there are a lot of legal terms to understand. For instance, the automatic stay is a legal phrase you will hear a lot if you file bankruptcy and what it means is that all creditors are automatically stayed from contacting you once you file a case. In everyday language the result is that your lenders are prohibited from contacting you to collect their debt or even to ask a question about their loan the instance you file bankruptcy. The benefit is automatic, and that is why it is referred to as the automatic stay. Another term you hear a lot when talking about bankruptcy is the bankruptcy discharge. This is the goal of every person who files a case; to get a discharge. The discharge is an entry made in the case at the end of the matter and it is the legal finding that your debts are no longer due. If a debt is discharged in bankruptcy that means you no longer have to pay for that debt.
Three of the most important benefits of a bankruptcy discharge are:
• All discharged debts are no longer due, so you no longer have to make the payments on these debts.
• The lender on a discharge debt is not allowed to call you and ask for payment or contact you in any way about the discharged debt. If you do receive a call or correspondence about a debt you have discharged in bankruptcy, you can take action against the lender for violating the discharge order.
• Because you no longer have to pay for discharged debts, you now have more money in your pocket to put towards other living expenses.
When you file a case you receive the benefit of the automatic stay, so the collection calls immediately stop. This freedom from harassing collection calls allows you to gather yourself and get on track with a budget while not having to pay all of your debts, and once the discharge is entered those debts are no longer considered valid and owing debts. When you take into consideration the fact you can stop paying on high interest rate unsecured loans the instant you file a case, will not have to make those payments during the case, and are no longer liable for those debts once the discharge is entered the benefits of bankruptcy quickly become apparent. For more information on how bankruptcy can help you, call our office.
If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you get prepared for what comes after we file your case, and have multiple locations where we schedule appointments.