Advantages of Filing Bankruptcy in Pasadena
Many people are unclear as to what the advantages are to filing Bankruptcy other than the fact that you don't have to pay back some of your debts. Well, that is certainly a big reason, but there are also several other reasons to consider filing Bankruptcy in Los Angeles, the San Gabriel Valley, and the greater Southern California area.
Filing Bankruptcy also puts a freeze on the creditor's collection efforts immediately by invoking the Automatic Stay. Furthermore, it prevents liens from being filed on your property by creditors.
In addition, filing Bankruptcy under certain Chapters can allow you to prevent a foreclosure of your home or even to strip away a second mortgage on a home that is "under water" in the aftermath of the housing collapse in Southern California.
Also, there are certain tax advantages to filing Bankruptcy in that a discharge of debts does not create a taxable event like a short sale or other negotiations with creditors. In other words, creditors will often take a loss and file that with the IRS for tax purposes, while the corresponding gain by the debtor can be taxed as if it was income rather than a forgiven debt. In Bankruptcy, this is not an issue.
Further, most debtors can totally exempt all of their assets through what are called exemptions, so that they not only get to remove all of their unsecured debt, they also get to keep all of their assets.
These are just some of the many advantages available to folks through Bankruptcy, not to mention the opportunity to gain a fresh start and emerge debt free at last. If you want to find out if this form of relief fits your particular situation, fee free to contact an experienced Pasadena Bankruptcy Attorney.
