The Benefits of Bankruptcy

Your Financial Fresh Start

When weighing your options for debt relief, it is essential that you consider all of the pros and cons of the actions you have available and how they apply to your personal situation. At Avery Law, our Idaho bankruptcy attorneys make these initial evaluation stages our firm's top priority, as we want all of our clients to be well educated and capable of making the best, most well-informed and most beneficial decision.

Bankruptcy law was created with the fundamental goal of benefiting consumers in need. In fact, the U.S. Supreme Court made this point about bankruptcy in a landmark 1934 case, Local Loan Co. v. Hunt:

Our firm strongly believes in the advantageous nature of bankruptcy and in the fact that it can provide much needed debt relief and numerous benefits to people in need. While we fully outline how the bankruptcy process can benefit your unique situation during your free case evaluation, the following benefits should provide you with an understanding of what bankruptcy can do for you.

Bankruptcy Protection Through the Automatic Stay

Anyone currently facing debt has most likely experienced a number of negative repercussions. As such, consumers can benefit immensely from the bankruptcy protection they will receive, regardless of which Chapter of bankruptcy is used.

Once you have filed a petition with the bankruptcy court, an automatic stay will be issued. This automatic stay orders all debt collection activities to stop.

The automatic stay puts a stop to the following debt collection activities:

• Wage garnishments
• Lawsuits
• Foreclosure proceedings
• Debt collection phone calls

This much needed reprieve can provide you with the time and the breathing space to organize your finances, become current on any debts and prepare for your financial future.

Asset and Property Protection

Contrary to some of the bankruptcy myths, bankruptcy does not mean a total and complete loss of everything you own. In fact, bankruptcy law makes a point of allowing consumers to keep a great deal of their personal property.

In Chapter 7 cases, for example, consumers are permitted to file exemptions and to keep certain property. State and federal laws will dictate exemption laws, but common examples of exempt property include household furnishing, tools of trade, life insurance policies, pension plans and others.

In Chapter 13 cases, consumers can also protect most, if not all, of their property and assets. Bankruptcy is also a powerful tool used in foreclosure defense.

Discharge of Debts

One of the most beneficial aspects of both Chapter 7 and Chapter 13 bankruptcy is the discharging of debt. Although there are a number of factors that will affect the scope and nature of your debt discharge, bankruptcy can generally allow most consumers to discharge at least some unsecured debts.

Unsecured debts are those that are not backed by collateral and can include:

• Credit card debt
• Medical bills
• Unsecured loans

Work With Avery Law Today

The benefits of bankruptcy can help consumers who are truly in need. By helping you explore all of your potential options and charting how they will impact and benefit your personal situation, our experienced Idaho attorneys can ensure that you successfully pave the road toward a brighter financial future.

We encourage anyone interested in bankruptcy to meet with a member of our legal team for a no obligation free case evaluation as soon as possible.