Nobody knows what the future holds for them. And businesses are especially working hard round the clock to try and stay competitive and keep their businesses growing and working as the days keep moving. But what happens when one point in time you or your business get stuck in a debt situation you cannot get out of. And the only option you see available is filing for bankruptcy. What do you do? What can you lose by doing that, and what are the benefits of making such a move? You find that most people actually fear to file for bankruptcy due to the many myths and misconceptions about the process. But filing for bankruptcy can actually end up working in your favor and ease you of a lot of financial stresses. Keep reading to find out more about the reasons to file for bankruptcy when financially stranded.
1. Protection from creditors
When you file for bankruptcy, many states offer you protection from your creditors. This move stops all your creditors from continuing or enforcing any court action against you without getting express permission to do so from the Bankruptcy Court. In simpler words, if your wages were already being garnished by your creditors, they must stop that move immediately. And if they froze any of your bank accounts, they have to release them as well and also stop any lawsuits they had already started, and none that has not started will ever occur.
2. Your creditors cannot “opt out.”
It is the law that all unsecured creditors are dealt with by filing for bankruptcy. No creditor can choose to ignore the process and instead still pursue the debt. In a bankruptcy filing, all debts, including the unsecured loans are included, and the consumer is freed from all creditors period.
3. The government and Courts set the rules
By this, we mean the rules are binding and are the same no matter which state you file it from. Bankruptcy is bankruptcy everywhere. And there are no exceptions. You should trust the governments and courts to set things right in case you run into any problems after filing for bankruptcy. In Canada, for example, the Office of the Superintendent of Bankruptcy handles any such cases.
4. You can be discharged from first bankruptcy in as few as 9 to 21 months
If you follow all the rules and regulations for the entire process, then you can be free of all pursues from creditors in just a few months. It is, therefore, crucial to know how long the bankruptcy will last before you file for one. As in some cases, a few things might change which might make the process go on for even longer.
5. You feel better
Filing for bankruptcy relieves people from a lot of financial stress. No one likes to file for bankruptcy. But immediately you make the move, all your financial problems and stresses go away. So, while making the decision may not be easy, it is empowering and puts you in more control and have a plan on how you can deal with the problem.
