Debt can leave you feeling helpless. It can make it harder to make ends meet, and increase your overall stress and anxiety. Despite this, millions of American’s struggle with looming debt everyday, with seemingly no chance of relief. However, if you are dealing with a large amount of debt, and looking to find debt relief, there is one option you should seriously consider; bankruptcy.
The Benefits Of Bankruptcy.
While many people tend to consider bankruptcy to be a dirty word, it can actually be beneficial in many ways to those struggling with large amounts of debt. A Bankruptcy attorney can work through your unique case, and tell you the exact type that is best for you, and what you should expect from the outcome. A few of the most common, and significant, benefits can include:
- Collection Agencies. When a bankruptcy is filed, a stay is created on all of your defaulted accounts. This means that collection agencies cannot take action against you in an attempt to collect any amount. This can also help prevent utility cut offs, wage garnishment, and eviction, though it can vary depending on the type of bankruptcy that you file. A bankruptcy lawyer can explain the exact benefits of each chapter, and what you can expect from filing it.
- Exemptions. Some chapter of bankruptcy allow for specific exemptions that prevent loss of property. While losing property is something not every chapter will cover, if you are at risk, speaking to your bankruptcy attorney can help you identify exemptions to prevent losing anything.
- Credit. A bankruptcy claim can remain on credit records for 7 to 10 years; however, this doesn’t mean your credit will continue to suffer. After filing, you can immediately begin reworking your credit score, and building it back up to sufficient levels. Without having to contend with a load of debt, this can actually be an easier process than before, as you have breathing room to pay dues on time.
- Credit Cards. While possibly the largest factor when it comes to debt, credit cards will usually be lost when filing for bankruptcy. For many this is a good thing, as the temptation to spend more than you have is removed. However, in some cases not all credit cards have to be lost, though this is something to speak with your bankruptcy attorney about. Keeping even one card can quickly turn into a slippery slope before you know it.
- Counseling. Many people who file for bankruptcy are required to attend credit counseling courses. This may sound like a pain; however, it can be beneficial in teaching useful methods of managing money. These sessions can help you work on budgeting, planning, and saving; all of which lends itself to helping keep you out of future debt.
Large amounts of debt can be crushing, and they can make you feel trapped and hopeless to improve your situation. Millions of American’s struggle with this situation each year, and it’s nothing to be ashamed of. However, if you are desperate for a solution, and a way to leave your debt in the past to begin anew, bankruptcy is an option you need to seriously consider.
Ask a bankruptcy law firm near you about sitting down for a consultation. With this, a bankruptcy attorney can explain the best course of action, what to expect, and how to start the process. Debt relief is possible, and while this is a big step, it can be the more efficient way to remove the burden of debt.