1) Getting rid of your Debts
Apart from some Taxes and student loans, bankruptcy allows you to eliminate most of your debts. This process is known as “discharge” by the bankruptcy court. Once a debt is discharged, no creditor can ever ask you to repay that debt. It means that you no longer o this debt to the creditor. If taxes are old enough, certain of them can also be discharged. In rare cases, even though discharging student loans is difficult, but can be done.
2) You can keep the assets you want.
Depending on the type of bankruptcy you file for, you get to keep the assets you want. Be at your home your car or any other asset that you have, you get to keep them. You may be given a certain time of up to 5 years to pay back on the missed payments though.
3) Rid of IRS Taxes
To get rid of your back taxes, there are certain qualifying factors that you must satisfy. However, after that, if you owe IRS or any other taxing agency, you can discharge your taxes through bankruptcy.
4) Stop Wage Garnishment
In case your payment is withheld by your employer, bankruptcy can be a lifesaver. Once bankruptcy is filed, garnishments that can be up to 25% of your weekly income are all stopped immediately.
5) All Lawsuits stopped by Bankruptcy
A lawsuit is a legal action against you to recover whatever is owed, or to collect damages, be it a result of a car crash or some dispute. The goal of the person suing you is to obtain a judgment against you. Once a judgment is made, the creditor has the power to either sell off your assets, take money from your bank account, or garnish your wages. They may also take some unpleasant actions against you. A judgment can be renewed after every 10 years, so it is best to stop a lawsuit even before a judgment is obtained. If you file for bankruptcy, the law immediately stops all of the lawsuit proceedings.
If you know that a lawsuit has been filed against you, immediately contact a good attorney and file for bankruptcy. That is a good way to save you forever. You can also contact Recovery Law Group from Los Angeles & Dallas, TX for the Same.
Contact – (888-297-6203).