There are a number of bankruptcy myths that can keep a person from turning to bankruptcy as a solution for their debt, especially when a divorce is involved. It is true that there are some negative aspects of the bankruptcy process. However, anyone filing bankruptcy before, during, or after a divorce will likely do so because of the positive aspects of bankruptcy. The benefits of bankruptcy can be grouped into the two categories below.

Filing Your Case Initiates the “Automatic Stay”

When your case is filed with this court, your creditors are immediately subject to the “Automatic Stay.” This Automatic Stay prevents any further attempts by creditors to collect money or property from you. Creditors cannot garnish your wages or repossess property, and they cannot even contact you. Creditor harassment by creditors attempting to collect the debts stops immediately. In fact, it is against the law for them to continue trying to collect from you after you have filed bankruptcy. The Home foreclosure process must also cease, which can allow you the chance to catch up on your mortgage payments and keep your home. Filing your bankruptcy cases give you immediate relief from credit actions. It gives you a chance to breathe easy while your attorney works with you to complete your bankruptcy.

The Completion of Your Bankruptcy gives you an “Order of Discharge”

Once the entire bankruptcy process has been completed, the court will issue you an “Order of Discharge.” This order signifies the end of your bankruptcy, and more importantly it signifies that you are officially no longer responsible for your qualifying unsecured debt. At this point, all the debt that was causing you worry and negatively impacting your life has been wiped away. You finally have a chance to start fresh and build a new financial future for yourself.