The Immediate Benefits of Filing for Bankruptcy


The idea of filing for bankruptcy makes some people uneasy, but that should not always be the case. For some people, filing for bankruptcy yields some immediate benefits that can significantly improve your quality of life right away. Here are a few of the ways that filing for bankruptcy can pay off right away.

You Can Answer Your Phone Again

One of the benefits of filing for bankruptcy is the “automatic stay.” The automatic stay ensures that once you’ve filed, the collection efforts must stop immediately. This will lift the burden of avoiding potentially embarrassing phone calls at inopportune times. The stay will also stop your mailbox from being filled with collection notices and bills you can’t pay.

You Start the Clock On Rebuilding Your Credit

The sooner you file for bankruptcy, the sooner you can begin to methodically rebuild your credit. There are ways that you can start making smart choices to rebuild as soon as your debts are discharged. By filing as soon as it is appropriate for your situation, you can start a fresh chapter, while the time the bankruptcy affects your credit begins to run.

You Will Not Necessarily Lose Your Assets

Many people are reluctant to file for bankruptcy because they have been told that they will lose all their car, family heirlooms or furniture. However, that often is not the case. First, it’s important to know that bankruptcy trustees aren’t usually after your everyday items like clothes or furniture. Second there are a number of factors which affect whether or not you will be able to keep items like your car or RV, one of which is whether you decide to file for chapter 7 or chapter 13 bankruptcy. If you talk with an experienced bankruptcy attorney, they will be able to counsel you on your best option to ensure that your everyday life doesn’t change very much.

Call a Salt Lake City Bankruptcy Lawyer Today to Schedule a Free Consultation

Contact the experienced Salt Lake City bankruptcy attorney at JLT Law to talk about whether you should file for bankruptcy in Utah. We would be glad to help you get started with a consultation. Call the office today at (801) 896-9444.