You know the feeling. Bills are piling up after the holidays. You’re late on some credit cards, and you had an unexpected health issue with the new wave of flu going around Michigan. Suddenly, unknown numbers are harassing you all hours of the day, demanding money that you don’t have. You’re one missed payment away from being in foreclosure, and the bank isn’t bending to help you. It seems hopeless.

But it isn’t.

When you are in a tough financial situation, bankruptcy, like any legal maneuver, can be used to help alleviate some of the issues you are facing.

Stop Collection Calls From Creditors

Creditors are given tremendous leeway when it comes to contacting you for debt collection. Many financial institutions farm out their collection calls to third parties that have been known for their aggressive, harassing tactics.

Unless you have written and mailed a cease and desist letter, collection agencies are allowed to do the following: Call multiple times per day, call anytime between 8:00 AM and 9:00 PM, call your home or cell phone number, call your place of employment, call your relatives (only to obtain contact information).

When you file bankruptcy all of these calls immediately stop. As soon as they are made aware of your filing, all creditors are legally obligated to quit all collection attempts. While this does not solve the larger issue, the stress of your phone ringing constantly will be lifted. No more waking up children at nap time, or embarrassing you at the office.

Delay Foreclosure and Repossession

If your debt includes your home mortgage or a car loan, a bankruptcy filing can help delay these processes significantly.

Being insecure in your housing or employment can be a tremendous burden. Having to seek out new housing or transportation when attempting to get your finances in order is no small feat.

If you file a Chapter 13 bankruptcy case, all repossession efforts will cease. This can be beneficial for the aforementioned reasons, but also, should you choose to sell an asset, such as your home, you may be able to get more for it than what the bank would ultimately give you.

Shield Your Most Important Assets

While laws vary from state to state, most states exempt the following from being used to settle debts: Inexpensive vehicles, primary residences, clothing, retirement accounts, and burial plots.

Not having to sell off these assets is helpful in a stressful situation, giving you peace of mind.

The Mitten Law Firm can discuss your specific situation and let you know what your best course of action would be. Give us a call today.