Some people associate the bankruptcy process with a loss of control, lack of options or severe financial despair. The truth is that the benefits offered by bankruptcy are far from the negative connotation implied by these misconceptions. In fact, the bankruptcy process can help thousands of people who may not even be at their rock bottom financially.
There are plenty of aspects of the bankruptcy process that are beneficial to people of all walks of finance and debt. For instance, the automatic stay order grants immediate protection from creditors and collections. Even if you have missed a single payment by accident a change reaction can be set off in no time, that leaves you harassed by creditors and threatened with credit damage. The automatic stay in bankruptcy halts collections and prevents further action or damage.
Since the automatic stay order prevents collections, anyone experiencing trouble with a secured debt can rest assured that their assets are protected while they work to get caught up on payments. We all know that even being as little as 10 days late on a car or mortgage payment can trigger the repossession or foreclosure process, both of which can leave you without the property you value.
Not only can bankruptcy protect your secured assets in debt relief, but much of your owned property can be kept safe while you work to resolve debts. Bankruptcy exemption laws can keep your essential assets away from the hands of creditors, as your debts are discharged by the court. Don’t let misconceptions about bankruptcy confuse you. Your Dallas bankruptcy attorney can help you pursue financial freedom under the protected arm of the law.