Video: What are the advantages of filing for bankruptcy?
The immediate advantage of filing any bankruptcy petition is the bankruptcy automatic stay that comes into place once the bankruptcy petition is filed with the bankruptcy court. That bankruptcy stay stops all harassment from creditors, whether it's phone calls you're getting at home, whether it's letters you're getting in the mail, and even lawsuits that have been filed against you have to stop immediately upon the filing of a bankruptcy. Ultimately at the end of the bankruptcy case you want to get what's called a bankruptcy discharge. If you get that discharge, that serves as a release for the rest of your life from having to pay your general unsecured debt.