People often feel as though bankruptcy is only for the poor or those who are on their last financial leg. This is far from the truth, and often times, the bankruptcy process is taken advantage of by people who wish to keep their property and commodities they have worked hard to obtain. Some of the wealthier people in America even file bankruptcy at the first sign of financial troubles because bankruptcy can be a financial life saver. There are many advantages to be had by filing bankruptcy.
Retaining a Bankruptcy Lawyer Effingham IL is the perfect way to begin the process of bankruptcy and to take advantage of the benefits it offers. One of the major benefits provided by bankruptcy is it protects one’s income and property from unsecured creditors. Unsecured creditors are parties who did not collect collateral or take a lien on property at the time the transaction transpired. Bankruptcy is the only means to know that one’s property is secured from such parties. The amount of property which can be covered varies from state to state, but more can be retained through personal bankruptcy than federal bankruptcy. Bankruptcy also protects one from automatic garnishment. Garnishment is when a creditor automatically takes a percentage of one’s earned wages out of their paycheck before the check is given to the debtor. Many jobs do not favor multiple wage garnishments, and this can save one’s job.
Another advantage of bankruptcy is that it discharges almost all of one’s debt. Bankruptcy eliminates any personal obligation to pay unsecured debts. These debts can include, but are not limited to, car payments, phone bills, and mortgages. However, if one has a lien on their property, bankruptcy does not eliminate the obligation to pay the lien. Once the bankruptcy process is finished, the lien can still be collected. There are certain debts which will not be eliminated including court costs, DUI judgments, income taxes due within the past three years, and child support. Once the bankruptcy process has started, creditors are unable to contact or harass the debtor, which will eliminate much unneeded stress. For more information on personal bankruptcy, contact a Bankruptcy Lawyer Effingham IL.