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Effects of Filing for Bankruptcy

Bankruptcy can seem like an intimidating prospect when viewed from a distance. But when you get up close to it and work with a trusted bankruptcy attorney, some of the mystery will fall away and you will see it as the beneficial financial procedure that it really is. You should also be able to see the positive effects that a successful bankruptcy filing can cause.

Three notable effects of filing for bankruptcy are:

  1. Automatic stay: Debt can come from all directions. In your day-to-day life, missing payments can become a problem for a variety reasons. When you file for bankruptcy, an automatic stay will be created to effectively bar any creditors from taking any action against you while your bankruptcy is being processed. This means no calls, no wage garnishments, no nothing from them, unless they want to land themselves in legal trouble. An automatic stay may also be able to keep your utilities on and stop your eviction for a few weeks.
  2. Credit score: Declaring bankruptcy usually scares people away because they think it will destroy their credit score. In reality, filing for bankruptcy can do the exact opposite. By discharging your debts and negative balances, a successful bankruptcy does have a chance of increasing your credit score and providing a clean, empowered slate for the future. With the right steps, you can use this boost to further improve your credit score in the following years.
  3. Unsecured debt: Bankruptcy was created to eliminate unsecured debt, or any sort of debt that is not linked to a piece of property or tied to a particular item. If your bankruptcy is successful, you may be amazed with how much off it falls away, reduced to a $0 mark or an omission on your financial records.

Do you want to know more about the effects of bankruptcy? Why not learn it straight from our team of New York bankruptcy attorneys at the Law Office of Simon Goldenberg, PLLC? Call 888.301.0584 today to request your free initial evaluation.