Top 4 Benefits of Filing for Chapter 11 Bankruptcy
Bankruptcy is one of those state laws that prevent the creditors from foreclosure, harassment, and repossession of assets. Most people around the world think about bankruptcy as an end to a firm which may fit well in technical terms but not in reality. A Bankruptcy is a condition where the borrower is unable to make due payments to the lenders due to the organization becoming insolvent. In this situation, money lenders may threaten or harass the borrower and his family and may take forceful actions in order to get their money.
There are plenty of Bankruptcy state laws in place to check the actions of creditors and prevent them from engaging in any forceful actions. These laws are in place to help the debtor clear all their debts without being harassed and get threatened in any way possible. A number of state law firms provide their expertise in filing for Bankruptcy laws such as Chapter 11 bankruptcy in Florida. These firms provide professional attorneys who know how to handle your creditors threatening call and prevent them from taking any forceful action against you.
Listed below are some of the key advantages of filing a Chapter 11 Bankruptcy:
- IMMEDIATE STOP TO AGGRESSIVE COLLECTION
A creditor always wants money even if he/she has to resort to violence. Filing for Chapter 11 bankruptcy in Florida prevents the creditors from taking any aggressive collection action and put an immediate stop on wage garnishments, bank levies, and other collection activities.
- BUSINESS CONTINUATION
Chapter 11 bankruptcy allows the debtor to continue his business and provide a certain leverage in making due payments. This means that the brand name, organization and the goodwill of the company is not lost. This is certainly a plus point, as no creditor would allow the lender to continue his/her business if the payments are not made on time.
- LOWERING INTEREST RATES
When a person files for a Chapter 11 bankruptcy in Florida, he/she can adjust the excessively higher interest rates on loans secured by vehicles, real estate, etc. Lowering interest rates save some money which can be used to pay other debts in place and help the debtor get off the hook.
- ALLOW THEM TO SELL THEIR PROPERTY
After filing for chapter 11 bankruptcy, one can easily sell their mortgage property to the buyer free and clear from all the encumbrances. This enables the debtor to pay some money if not all, back to the lender.
It is not such a dreadful thing to get bankrupt as one thinks. So, if you wish to be safe from any harassment or threatening calls, consider filing for Chapter 11 bankruptcy in Florida by hiring a professional attorney for yourself.