8 reasons to be thankful for bankruptcy

This Thanksgiving, if you are facing bankruptcy it may feel like you have nothing to be thankful for. It may feel like your life is over. That could not be further from the truth. Bankruptcy is something that can happen to anybody for reasons beyond their control, but the ability to file for bankruptcy is something to be thankful for. 

If you feel despair or embarrassment, it might be time to shift your way of thinking. There are many stereotypes about what it is, what it involves, and whether or not it’s a good idea. But bankruptcy was specifically designed to help people get back on their feet after financial hardship. You shouldn’t be ashamed about bankruptcy because it means you’re taking action to get back on track.

Reasons to be thankful for bankruptcy

Even with a positive attitude, we know this is a hard thing to go through. However, we want everyone to understand that bankruptcy can be your saving grace is many situations.

Filing for bankruptcy can allow you to:

  1. Keep your assets: The overwhelming majority of our clients lose no assets when filing for bankruptcy. Bankruptcy law allows exemptions so that when you file for bankruptcy, you can keep certain kinds of property. The law recognizes that when people file for bankruptcy, they still need basic assets and possessions to move forward after bankruptcy, such as a home, a car, and tools of the trade. 
  2. Get rid of credit card debt: If you are struggling with credit card debt and seeking a sound debt relief solution, bankruptcy may be the best option. We help people resolve credit card debt problems by helping them file for Chapter 7 and Chapter 13 bankruptcy. 
  3. Eliminate or reduce medical debtMedical debt is often a big reason for bankruptcies, especially due to high copays and deductibles and gaps in coverage. If you are struggling with medical debt, you have probably been contacted by debt collectors who harass you and threaten you with lawsuits, wage garnishment, and other legal actions. Filing for bankruptcy stops creditors from taking action against you and from contacting you. For many struggling with medical debt, Chapter 7 bankruptcy is the best solution, because it completely wipes out unsecured debt.
  4. Deal with tax debt: Depending upon your circumstances, you may be able to achieve tax debt relief by filing for bankruptcy. Our attorneys have extensive experience handling tax debt issues for clients. It’s important to understand that bankruptcy does not eliminate all types of tax debt, but it has proven a very effective form of tax debt relief for many.
  5. Stop creditor harassment: If you have excessive debt and have missed debt payments, you have likely heard from your creditors a lot, but this can be stopped. Filing for bankruptcy protects you from creditor harassment and other debt collection activities with the automatic stay, a legal injunction that stops creditors from taking any legal action against you.
  6. Stop repossession: If a creditor has threatened to repossess your vehicle or other personal property because you have fallen behind on your debt payments, it is important to take quick action. Bankruptcy stops repossession and other creditor actions. If you are in danger of losing your car, furniture, appliances, or other personal property, our attorneys can help you explore your legal options.
  7. Stop foreclosure: Losing your home can be a terrible consequence of debt. If you have fallen behind on your mortgage payments and are facing foreclosure, it is important to be proactive, because this is a time sensitive matter. Filing for bankruptcy stops foreclosure and other debt collection activities. Our attorneys understand the urgency of these matters and routinely file emergency bankruptcy petitions.
  8. Stop wage garnishment: Creditors who obtain a judgment against you have the right to seize up to 25 percent of your paycheck and an unlimited amount from your bank account (up to the total amount of the judgment). Bankruptcy stops wage garnishment, bank account levies, and other debt collection actions.

These are eight significant reasons to be thankful for bankruptcy. Without the option, you might not have any good solution at all to deal with the above financial issues. This year, even though it may be a different kind of Thanksgiving for you, try to count ALL the blessings you have.

Discover Tom Bible Law in Chattanooga, TN

If you are struggling with excessive debt and looking for a sound solution, the attorneys at Tom Bible Law, can help you explore your legal options. We have helped numerous clients from Chattanooga and throughout Tennessee and North Georgia achieve their debt relief goals by guiding them through the bankruptcy process. We work with every client personally, giving each and every bankruptcy case the time and attention it needs. We understand the financial pressures our clients are facing and work to resolve their debt problems in a favorable, cost-effective manner. Our bankruptcy lawyers have more than 50 years combined experience and are here to help. Call us today at 423.454.2334 or drop us a note here.

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