GET HELP TODAY

Toll Free : 888-858-5404 | Local : 850-391-2884

Hathaway Sprague Law, P.A.
Experienced And Effective

We are a board-certified consumer bankruptcy attorney and a lawyer with over 30 years of experience in the areas of consumer rights and criminal defense. Together, we help people in Florida’s Panhandle keep their homes, find long term debt relief, fight criminal charges and develop estate plans that will benefit them and their loved ones.

Photo of the legal team at Hathaway Sprague Law, P.A.
GET HELP TODAY

Toll Free :
888-858-5404
Local :
850-391-2884

Hathaway Sprague Law, P.A.
Experienced And Effective

We are a board-certified consumer bankruptcy attorney and a lawyer with over 30 years of experience in the areas of consumer rights and criminal defense. Together, we help people in Florida’s Panhandle keep their homes, find long term debt relief, fight criminal charges and develop estate plans that will benefit them and their loved ones.

Photo of the legal team at Hathaway Sprague Law, P.A.
GET HELP TODAY

Toll Free :
888-858-5404
Local :
850-391-2884

Hathaway Sprague Law, P.A.
Experienced And Effective
  1. HOME
  2.  » 
  3. Bankruptcy
  4.  » 4 ways filing for bankruptcy can alleviate financial stress

4 ways filing for bankruptcy can alleviate financial stress

On Behalf of | Jul 3, 2024 | Bankruptcy |

Filing for bankruptcy can be a difficult decision, but it can also be a powerful tool to regain financial stability. Understanding the benefits of bankruptcy can help alleviate the stress and burden of overwhelming debt. You can follow a few steps to file bankruptcy and enjoy a fresh start.

Automatic stay

Once you file for bankruptcy, an automatic stay goes into effect immediately. This legal provision halts all collection activities, including calls from creditors, wage garnishments, and foreclosure proceedings. 

Discharge of debts

Bankruptcy allows for the discharge of certain debts, meaning you are no longer legally obligated to pay them. Chapter 7 bankruptcy eliminates many unsecured debts such as credit card balances, medical bills, personal loans, etc. 

Chapter 13 bankruptcy is a popular alternative to Chapter 7. It establishes a repayment plan to pay off debts over a three- to five-year period.

Protection of assets

Bankruptcy laws offer robust exemptions that allow you to protect certain assets from liquidation. These exemptions include homestead protection. It can safeguard your primary residence, personal property, retirement accounts, and wages. 

Financial counseling and education

Bankruptcy requires mandatory financial counseling and debtor education courses. These programs can help you understand your financial situation and help you manage your finances. 

Filing for bankruptcy can be a life-changing step toward regaining control of your financial life. The immediate relief from the automatic stay and the potential for credit score improvement all contribute to getting your life back on track. 

By understanding these benefits, you can make an informed decision about whether bankruptcy is the right solution for your financial challenges.

FindLaw Network