Many people struggle under the weight of seemingly insurmountable debt. Financial problems can cause a lot of stress and anxiety, and many can’t see a way out. Although a lot of people regard bankruptcy negatively and as a measure of last resort, the truth is that it can actually help those struggling to pay their bills.
Those who cannot make payments to credit cards and other lines of credit are likely already receiving phone calls from their creditors. They may also be experiencing wage garnishments from their employers and may face the risk of foreclosing on their homes or the repossession of their cars and other valuable assets. Filing for bankruptcy can assist these people in the following ways:
- It will put an end to the harassing phone calls debtors receive from their creditors and halt any ongoing debt-related lawsuits.
- Bankruptcy can also put an end to wage garnishments employers take to repay creditors who have filed suit.
- Bankruptcy also puts a stop to foreclosure and repossession proceedings, and the debtor may actually be able to exempt some of his or her property from repossession.
Speak with an attorney
While it is true that a debtor’s credit rating may take a hit after the person declares bankruptcy, the benefits often outweigh the potential side effects. However, the bankruptcy process is a complicated procedure, and anyone considering the option will want to work with an experienced bankruptcy attorney from the beginning. A lawyer can advise a client of his or her options, qualify the client for the proper chapter selection that makes the most sense and work to obtain the most favorable outcome possible for the client, considering the circumstances.