Filing for Bankruptcy Has Immediate Benefits


Being behind on your bills can be extremely stressful. You might avoid going to the mailbox or picking up the phone from unknown numbers. Many people who find themselves in this situation do not know where to turn, and they might let the situation go on for months or even years.

Unfortunately, ignoring debt collection attempts is not going to make your situation any better, and your creditors are unlikely to give up on trying to collect on significant debts. As a result, it is better to start to address the problem as soon as possible.

When you file for bankruptcy, your situation will immediately improve, even before any debts are discharged. This is because of the automatic stay, which is a court order that is automatically issued in every bankruptcy case that prohibits creditors from engaging in any collection activities while the case is pending. Some things creditors cannot do after the automatic stay has been issued include the following:

  • Send letters
  • Make phone calls
  • Repossess property
  • Foreclose on real estate
  • File a lawsuit to collect a debt

Because of the automatic stay, may people who file for bankruptcy feel immediate relief the day that they file.

Bankruptcy Can Completely Eliminate Many Debts

Of course, the benefits of the automatic stay are just the beginning of the ways in which bankruptcy can help your financial situation. The main benefit of filing for bankruptcy is the fact that many (if not all) of your debts will likely be discharged. Some examples of the kinds of debts that are often discharged in bankruptcy include the following:

  • Credit card bills
  • Medical bills
  • Personal loans
  • Collection accounts
  • Civil judgments
  • Certain tax debts
  • Car loans
  • Business debts

Call JLT Law Today to Schedule a Free Consultation With One of Our Attorneys

If you are experiencing financial difficulty, you should speak with a lawyer as soon as possible. To set up a free, no-obligation consultation with a Salt Lake City bankruptcy lawyer, call our office today at (801) 896-9444 or contact us online.