What are the benefits of filing bankruptcy?
Bankruptcy provides two main benefits: • Immediate Protection from Creditors. Whether you file for bankruptcy under chapter 7, 11, or 13, you are protected by the automatic stay. The automatic stay is a powerful concept. Generally creditors must immediately halt all debt collection or repossession activities. Similarly, all lawsuits against you must stop. Of course, there are limits on the automatic stay. For example, the automatic stay usually does not postpone criminal actions against the debtor, divorce proceedings, or eviction actions. If you have questions about what types of proceedings bankruptcy can stop, you should contact a bankruptcy attorney for a free consultation. • Discharge of Debts. Bankruptcy also allows a debtor to eliminate certain debts. Debts in bankruptcy are considered either dischargeable or non-dischargeable. Most debts in bankruptcy are dischargeable. Dischargeable debts often include credit card debts, medical bills, or judgments against you. Some debts, how
