Many people who file for bankruptcy actually have more money to live off of than before they filed. There are a lot of misconceptions about bankruptcy, and one is that people are left with nothing afterwards. But, how is it possible that a person would have more money after bankruptcy?
As soon as you file for bankruptcy your creditors are no longer allowed to attempt to collect money from you. When you file, you stop making payments on the debts that are going to be erased by the bankruptcy. Then, after you receive your bankruptcy discharge order your debts are erased. You are no longer legally obligated to pay them back.
The monthly payments you were making toward credit cards or medical bills are now freed up.
You can redirect that money to creating an emergency fund, building a retirement account, and making wise financial choices for your family’s future. In this way, bankruptcy empowers people to take control of their financial wellbeing.
Another common misconception is that everyone who files for bankruptcy is bad with money. That is simply not true. The common reasons people file for bankruptcy are often unavoidable and unforeseeable. These include medical debt, unemployment, and divorce. When you’re no longer living under a massive amount of debt, you can really start anew.
Money is freed up to pay for living expenses.
If you were struggling to pay your living expenses prior to filing, bankruptcy can free up funds so that you are able to afford your mortgage or rent, your car payment, and your other monthly bills. Once your basic needs are met month after month, you can then focus on saving and making wise financial choices so that you get the full benefit of your bankruptcy and debt-free fresh start.
Having more money after bankruptcy.
Here at the Law Office of Barbara B. Braziel we will make sure you understand the benefits of bankruptcy and how filing with affect you and your family. We take the time to explain the bankruptcy process to our clients. We invite you to learn more about our firm here and come meet with us for a free no-obligation consultation.
For over 35-years we have proudly served the people in Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.