Wednesday, August 16, 2017
Three Main Purposes To Bankruptcy
Most people think of filing for bankruptcy as a last resort to stop a foreclosure, or to put an end to a wage garnishment or other collection activity. But there is more to the process, and when done properly you can achieve financial success through filing a case. The main goal of a case is to eliminate or reduce debts, however this is not all that can be accomplished by filing a bankruptcy case.
Three main purposes to bankruptcy, other than having your debt slate wiped clean, are:
• To get a fresh financial start. Some situations are so complex that the best way to clean them up is to start over. This is especially true when it comes to your money. If you have gotten in over your head, and are barely making headway by making minimum monthly payments, you can start fresh by filing for bankruptcy.
• To manage debt in an orderly fashion. Bankruptcy cases are overseen by trustees, who have no stake in your case other than the orderly administration of the process. Having a disinterested third party at the helm provides for debt elimination in a way that is organized and monitored.
• To give creditors fair and equitable repayment treatment. How a creditor is repaid is probably not at the top of most borrowers’ lists of priorities, but one purpose of bankruptcy is to strike a balance between giving an honest but unfortunate debtor a clean start, with the repayment needs of the lenders. While bankruptcy court exists to afford relief to debtors, there are some protections for creditors as well.
Of these three main purposes to bankruptcy, two are geared towards helping the debtor. This tells us that help is available, and if you need help all you have to do is ask. We have helped people have successful bankruptcy cases, and can help you too. If you have more debt than you can repay, if there does not seem to be any light at the end of the tunnel and you are treading water, contact our office today to find out how bankruptcy can help you get out of debt.
For more information about bankruptcy and how it can help you, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.