The term bankruptcy has a negative connotation. When we hear about businesses filing bankruptcy, we imagine they are no longer in operation. However, that is not always the case.
When an individual or married couple file bankruptcy, life goes on. In fact, many that file bankruptcy refer to it as a fresh start or a clean slate. So how can filing personal bankruptcy help you?
Bankruptcy Will Stop Calls From Debt Collectors
Creditors will use any tactic they can to get you to pay your outstanding debts. Unfortunately, some of those tactics can cross the line into harassment. Creditors may call your home at all hours of the day or night. Or, they may start calling your friends and family. Sometimes, the harassment involves making calls to your employers.
One of the benefits of hiring a bankruptcy attorney & filing Chapter 7 bankruptcy is that the harassment stops once you have an open bankruptcy case. Once your attorney files your bankruptcy case, your creditors have to stop contacting you altogether.
Your Debts Will Largely Disappear
If you have accounts in collections, you are probably watching the balances go up as fees and penalties are added to the amount you actually owe. It probably seems like a no-win situation. Creditors and collection companies don’t care about your situation. But hiring a local bankruptcy attorney can help you with making these debts go away.
When you have your bankruptcy attorney file for Chapter 7 bankruptcy, much of your debt will be discharged, which means you will not owe them any longer. With Chapter 13, the courts will work to ensure that you get affordable payment plans for your outstanding debt. Your bankruptcy attorney can help you decide which bankruptcy option is best for you.
Wage & Bank Account Garnishment Will Stop
It is often the case that creditors will file for a garnishment order if they are not being paid. This means they are collecting money from your paycheck before you even see it. When you file for Chapter 7 bankruptcy, this stops.
If creditors have garnished your bank accounts or wages, you may not have enough money left over to survive. If that has happened, hire a bankruptcy attorney. You might not know it, but when you file for bankruptcy, the garnishments stop. Creditors will no longer be able to take money from your bank accounts or attach your earnings.
You Most Likely Will Be Able To Keep Your Home
If you have fallen behind on your house payments, do not wait until the bank takes it away. Even if you are facing foreclosure, filing for bankruptcy can help you save your house. Your bankruptcy attorney can often help you keep your home, even after filing for bankruptcy.
Bankruptcy can help restructure your loan so that your payments are more affordable. And, once the rest of your debt gets discharged, you will have the money you need to stay current on your house payments.
Your Overall Quality of Life Will Improve
You will start to feel like your financial problems can be addressed. You’ll stop being harassed by debt collectors and your wage garnishments will stop, giving you the ability to pay your bills and put food on the table. Many clients say that once they file for Chapter 7 bankruptcy protection, they are able to sleep better at night knowing that they have taken a big step forward in managing their debt crisis.
You will also get a fresh start. Yes, your bankruptcy filing will impact your credit, but that is a temporary issue that you can mitigate by making your payments on time and making wise financial decisions. It will feel like a new day has come, and for your financial future, it has.