When people arrive in my office, it’s often as a last resort. They’ve fought hard to try to stay afloat financially, but the waters of debt are rising too quickly. In many years as a bankruptcy attorney, I’ve seen countless individuals and families get the help they need from filing bankruptcy. So, how exactly does bankruptcy help?
Stop the Snowball Effect
As you choose to pay one debt or bill, another may be sacrificed, earning you a late fee. Those fees then gather interest as well. Before you know it, your debts are building no matter what you do. Usually, that’s how people end up in a place to file for bankruptcy, and thankfully, doing so helps prevent the growing problem. If you’re constantly receiving phone calls from debt collectors or you’re facing the potential to lose your home, filing for bankruptcy can put a stop to it all. If your home is threatened by foreclosure, consider filing for bankruptcy to stay in your home and take the time to sort out your finances. Stop the harassing collections calls and deal with your debt in a helpful way.
Relieve the Stress and Burden of Debts
You may have spent months or even years afraid of your mountains of debt or your plummeting credit score, and that’s where bankruptcy comes in. See, it’s meant to be a tool to help you hit the reset button your finances. Depending on the type of bankruptcy you file, you either repay some of your debts, or they are discharged, allowing you to start over. The stress associated with unruly debts and struggling to decide what to pay and what to skip, with bankruptcy it is relieved!
Improve the Outlook of Your Financial Future
Perhaps you have dreams and goals your finances are holding you back from. When you can hardly keep up with your credit card bills, how could you even begin to think about owning a house someday? Well, filing for bankruptcy can give you a clean slate with hope in your financial future. Constantly falling behind on debts and racking up your debt-to-income ratio can hinder you in the future, as well as hurt your credit score. So if you’re caught in an unmanageable debt cycle, bankruptcy could be the key to unlocking your financial future. It is possible to buy a house, get a credit card, and qualify for an auto loan within some time after bankruptcy. While it’s not immediate, you can look forward to greater financial possibilities thanks to the freedom provided by the law through bankruptcy.
If you’re interested in determining whether bankruptcy is the right way to handle your financial situation, contact me for a free consultation. Together, we’ll find the best plan for you. Call my office at 651-454-0007.