Most Americans are dealing with an incredible amount of debt. When your payments are exceeding your income and you can’t seem to keep track of your bills, then you may be in over your head. Fortunately, there are ways that you can get out from under your debts. One way that you can help yourself is through filing bankruptcy. While many fear bankruptcy, you may be surprised by the benefits.
End Creditor Harassment
If you are hearing from creditors nonstop, once you file bankruptcy, those calls should stop. Depending on whether you file for Chapter 13 or Chapter 7 bankruptcy, you won’t be hearing from the creditors constantly. With Chapter 13, you would set up a payment plan with most of your creditors to pay off your debts in a more reasonable way. With Chapter 7, you completely wipe out most of your debts. During the bankruptcy, however, creditors cannot continue to harass you. Then, when it’s over, you will either have a payment plan or you will no longer owe debts to those companies.
Rebuild Your Credit
A lot of people fear bankruptcy because it does hurt your credit score. The bankruptcy will remain on your report for several years and you will continue to see the effects of it following the filing. This doesn’t mean that you shouldn’t file, however. Just because your credit takes a hit doesn’t mean that you can’t rebuild it. In fact, you can start to rebuild your credit as soon as you are finished with the bankruptcy. Over the next several years, you may even see that your credit is higher than it was before.
When you cannot make your payments, your credit also takes a hit. It is better to take the hit from the bankruptcy than to watch your credit score drop because you keep missing payments.
You shouldn’t be afraid of bankruptcy! A lot of Americans have to file for bankruptcy to get out from under debt. This is common and nothing to be ashamed of. Likewise, it doesn’t ruin your credit forever. You may see an initial hit to your credit score, but you are also going to have opportunities to rebuild your credit. On top of that, you no longer have to worry about the endless calls from creditors demanding money. If you think that bankruptcy might be the route you need to take, set up a consultation with a chapter 7 bankruptcy lawyer in Waterbury, CT today to find out if this is your best option.
Thanks to The Law Offices of Ronald I. Chorches for their insight into bankruptcy law and the advantages of filing for bankruptcy.