If you cannot pay your debts and continuously receive calls from creditors asking you for money, you may want to seek advice from a bankruptcy attorney. Filing for bankruptcy is not something most people turn to right away, yet it can be a great option when you have no other way out of your debt problems. Talking to a lawyer is a great way to learn more about the ways bankruptcy will help you, and here are three of the top ways bankruptcy helps people in situations similar to yours.
It Stops the Calls
To file for bankruptcy, you will need to fill out paperwork, take a credit counseling course, and pay the fees to your lawyer, but when you complete this and the court receives your paperwork, they will issue an automatic stay. This is a court order that all your creditors will be notified about, and it prohibits them all from contacting you. The automatic stay will end all phone calls, all emails, all texts, and all letters from any creditor you list on your bankruptcy paperwork. This in itself offers a great deal of relief to people who are majorly in debt.
It Offers a Discharge of Debts
If you are able to use Chapter 7 bankruptcy, you will find relief from your debts through the discharge bankruptcy offers. A discharge of debts means that you no longer owe them. In other words, the court will forgive the amounts you owe, as if you never owed them. They will be wiped away, and you will not have to pay another dime for them. Of course, there are certain debts that courts will not discharge; however, if you owe money to credit card companies or health care centers, Chapter 7 will offer forgiveness for these debts.
You Get a Fresh Start
If you qualify for Chapter 7 and receive a discharge, you will also have a fresh start. This means that you will still have the same income coming in, as long as you keep your current job, but you will have fewer debts to pay. When you file, you will not only be required to take one credit-counseling course before you file, but you will also have to take a second one after filing, and these courses can help you learn techniques to incorporate into your budgeting and finances to avoid falling into debt again.
If you need help with your debt problems, consider contacting a bankruptcy law firm. This will not obligate you to file, but it will help you understand the process and the pros and cons that bankruptcy offers.