How Filing Bankruptcy Can Help You Achieve Debt Relief In 2021
Declaring Bankruptcy To Fulfill Your New Year’s Resolutions
Many of us start the new year with the resolution to leave all of the past’s baggage behind us. Abandoning toxic situations and breaking bad habits will take self control. However, self control will probably not be enough to deal with looming debts if you are already considering filing for bankruptcy. Chances are that your current financial situation is already too dire to fix on your own. Perhaps filing for bankruptcy protection would provide you with the debt relief and “Fresh Start” that you seek.
There are many reasons that you may want to consider filing bankruptcy at the beginning of the year versus later on in the year. Filing bankruptcy earlier in the year has its benefits. Here are a few reasons to consider declaring bankruptcy sooner this year than later.
Tax Refunds & Less Stress For The Tax Season
If you expect to receive a tax refund, you will want to consider this into when you choose to file bankruptcy. The amount of your tax refund that the trustee may elect to keep depends on what month you file. For example, if you file in November, the trustee can take 11/12 of your refund. If you file in January, the bankruptcy trustee could only be 1/12. The less your trustee takes from your tax return, the more money you will have in your pocket. If you don’t expect a tax refund, it can still be advantageous to file before tax season. Another tax-related reason to file earlier in the year is reducing stress around tax filing season. If you are prompt now with submitting documents, you may only be waiting for your discharge during tax season. Don’t procrastinate- schedule a bankruptcy consultation early in the year so you know when would be best for you to file.
Filing Bankruptcy Early In The Year For Financial Freedom
While you should be able to rent an apartment and lease a car after filing for bankruptcy, it will be two years before you qualify for a home loan. The sooner you file, the sooner you can be eligible for a home loan. Basically, the quicker you file for bankruptcy, the sooner you will be on the road to a “Fresh Start”. You can then take steps to rebuild your credit, like making timely payments on your installment plans and opening a secured credit card through your bank. This will help you pass credit checks for residential renting, new lines of credit, certain career opportunities, and more.
Your date of filing will also determine how long your bankruptcy will remain on your credit. A Chapter 7 remains on your credit for 10 years from the date of filing, and a Chapter 13 remains on your credit for 7 years from the date of filing. However, you should still be able to obtain financing and credit cards much sooner than when your bankruptcy is off your credit. You will receive offers for new credit cards when your case is discharged, and may even be able to obtain financing before then. A Chapter 7 bankruptcy is typically discharged in 4-6 months, and a Chapter 13 bankruptcy is discharged in 3-5 years.
Stop Creditors From Harassing You
Once you retain a bankruptcy attorney and inform any creditor that calls you, they may only contact your attorney about your debts. If your resolution this year is to spend less time on your phone, stopping creditors’ harassing calls is a good way to start. You can have the peace of mind knowing that when your phone rings, it is more likely to be a call from someone you actually want to talk to. Your creditors’ ability to pursue you will be restricted even further by the Automatic Stay.
Automatic Stay Protection Against Garnishments, Foreclosures & Repossessions
Your bankruptcy filing triggers a legal protection known as the Automatic Stay. The Automatic Stay limits the rights your creditors have in pursuing you for payment. Once the stay is activated, your creditors can’t foreclosure on your home, shut off your utilities, repossess your vehicle and other assets, and it stops most wage and bank account garnishments. The Automatic Stay protects you from your creditors until your case is discharged or dismissed. If your case is discharged, you likely won’t owe the debt you were being garnished for anymore, and it won’t resume. The Automatic Stay gives you the peace of mind that you will be protected while addressing your debts through bankruptcy.
If you are facing an imminent garnishment, repossession, or foreclosure, the clock is ticking. Our bankruptcy attorneys are experienced in emergency filings, and can have you protected by the Automatic Stay in a matter of days, or even hours. Schedule your free consultation as soon as possible to learn more about the emergency filing process.
Contact Experienced Bankruptcy Attorneys In Nevada
Declaring bankruptcy is a great assistance in saving your home from foreclosure, stopping a garnishment, or preventing a repossession. Start your New Year off right, get the debt relief assistance you seek.
Keep in mind, whether you have an impending foreclosure or garnishment, or if you simply want to start the new year with a fresh start, Chapter 7 or Chapter 13 bankruptcy may be a good option for you. Our bankruptcy attorneys can help you determine if you qualify for bankruptcy, and will determine which chapter of bankruptcy benefits you the best. Our experienced bankruptcy lawyers and staff will guide you through the process of filing bankruptcy, from our initial FREE consultation all the way through your bankruptcy discharge.
Plus, our debt relief office offers Zero Down Bankruptcies and affordable payment plans curtailed to fit every budget. You may hear other bankruptcy attorneys offer payment plan options. Many require payment in full up front, or at least the filing fee with attorney’s fees payable in installments after your case is filed. The filing fees for a Chapter 7 are $338, and $313 for a Chapter 13. Most people considering bankruptcy don’t have this much spare cash in their accounts. That’s why our attorneys offer a True Zero Down Bankruptcy plan for eligible clients.
Las Vegas Bankruptcy Lawyers