What can Bankruptcy Do For Me?
It is a misconception that bankruptcy ruins your reputation. It might hurt your chances of getting loans and credit in the short term, but that is all. It is basically a personal decision that enables you to restructure and renew your financial situation for the sake of yourself and your family. In simple terms, bankruptcy is like flicking the switch of your debt history off and then back on. It resets your consumer debts such as those associated with your credit card, vehicle, mortgage, etc.
It is widely (and wrongly) believed that bankruptcy leads to the loss of all assets. However, contrary to this, many assets that you own are protected by bankruptcy laws within the bankruptcy court. The assets include furnishings, retirement saving accounts, basic homes and vehicles (inexpensive ones). The specifics vary state to state and at the federal level, so you should check the laws in your state or area to have better information about what is protected. On the federal level, retirement accounts are protected to a limit of $1,171,650. Other things that are protected include your 401(k) account, pension, disability, IRA and Social Security benefits. This is the reason why many lawyers recommend against borrowing from a protected account for the repayment of debt.
Most importantly, whether you’re facing foreclosure on your home or you are being harassed by creditors. We are confident that our attempt to restart you with a new financial slate, will give you the tools you need to retake control of your financial life.
A few of the protections and other benefits bankruptcy offers, include: