Are There Benefits to Filing for Bankruptcy?
Many people would probably cringe at the mere thought of having to file for bankruptcy. But in reality, many are forced to seek out bankruptcy as it is the only viable solution to their debt problem. While nobody wants to have a bankruptcy credit report, in certain circumstances, it can actually be beneficial not only for the borrower but for the borrower’s family as well. Below is a list of the possible benefits of filing for bankruptcy: The chance to be free from debts. A Chapter 13 Bankruptcy will discharge you from all your obligations to your creditors. However, it is worth noting that not all types of debts can be discharged by bankruptcy such as student loans, liens, family support, to name a few. The court shall be the one to decide whether you will be eligible for a Chapter 13 Bankruptcy based upon the result of your Income Means Test. If you fail test, the court may rule a Chapter 7 Bankruptcy which will put you under a five‐year repayment plan.
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