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Benefits of Bankruptcy

Oklahoma City Attorney Representing Clients Who Can Benefit From Bankruptcy

Most people struggle financially at some point in their lives. If you are unable to overcome your financial challenges, filing for bankruptcy might help you take control of your finances. Even though it is often viewed in a negative light, the truth is that many people benefit greatly from filing for bankruptcy.

There are three types of bankruptcies:

  • Chapter 7 Bankruptcy
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy

Each type of bankruptcy offers its own unique benefits to debtors. If you are considering filing for bankruptcy, it’s important to understand how each type could benefit you.

What Are the Benefits of Chapter 7 Bankruptcy?

Filing for Chapter 7 Bankruptcy has its benefits, including:

  • Most of your debts will be discharged at the end of your case.
  • You will be given a fresh financial start.
  • The entire process only takes a few months, so you can move on quickly.
  • Filing for Chapter 7 will temporarily prevent creditors from contacting you or taking legal action against you.

You must meet certain requirements to qualify for Chapter 7 Bankruptcy. To find out if you are eligible, speak to the bankruptcy attorneys at Mitchell & Hammond.

What Are the Benefits of Chapter 11 Bankruptcy

Some of the benefits of filing for Chapter 11 Bankruptcy include:

  • You are given an opportunity to restructure your finances to ensure future financial success.
  • You are temporarily protected from creditors after filing for bankruptcy.
  • You will not have to liquidate your assets in order to repay your creditors.
  • You can keep your business open even after filing for bankruptcy.
  • You can retain some or all decision-making power over your personal or business finances after filing for bankruptcy.
  • You—or your business—will be given a fresh financial start after the case has been closed.

Both businesses and individuals can file for Chapter 11 bankruptcy, however, the majority of Chapter 11 cases are filed by corporations. If you are considering filing for Chapter 11 Bankruptcy, contact the team at Mitchell & Hammond.

What Are the Benefits of Chapter 13 Bankruptcy?

Many people who do not qualify for Chapter 7 Bankruptcy choose to file for Chapter 13 Bankruptcy instead. There are a number of benefits to filing for Chapter 13 bankruptcy. Some of these benefits include:

  • You will not have to sell your property in order to repay your creditors.
  • You will still have to repay some or all of your debts over a period of three to five years, but the payments will be affordable.
  • Chapter 13 bankruptcy will allow you to take control of your finances.
  • The debts that remain at the end of your repayment plan will be discharged, with several exceptions.
  • Filing for Chapter 13 will temporarily protect you from creditors, so you won’t need to worry about lawsuits or harassing phone calls.
  • You will have an opportunity to make up for missed payments to stop foreclosure and vehicle repossession.

Filing for Chapter 13 Bankruptcy might be the way to resolve your financial problems. Learn more about the process of filing for Chapter 13 Bankruptcy by calling the experienced attorneys at Mitchell & Hammond today.

Are There Bankruptcy Alternatives I Should Consider?

There are many benefits to filing for bankruptcy, but there are also some negative consequences. For example, filing for bankruptcy can negatively impact your credit, so you must commit to rebuilding your credit after your case has been closed. It can also be difficult to secure new lines of credit with a Chapter 13 Bankruptcy on your record. Because of these consequences, many people are hesitant to file for bankruptcy even if they are in need of financial assistance.

Fortunately, bankruptcy is not the only way you can seek financial relief in Oklahoma City. There are other options available to people who are struggling to pay their bills. Some of the most popular bankruptcy alternatives include:

  • Debt consolidation loans
  • Debt settlement
  • Loan modification
  • Credit counseling

Don’t file for bankruptcy without exploring each of these alternatives first. By exploring the alternatives, you may find that you can resolve your financial troubles without having to declare bankruptcy.

Learn More About the Benefits of Bankruptcy During A Free Consultation

Learn more about the bankruptcy process—and whether or not it’s right for you—by speaking to the bankruptcy attorneys at Mitchell & Hammond. Tell us more about your situation so we can help you understand the many options that are available to you. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.