When your debt becomes overwhelming and unbearable you might start thinking about filing for bankruptcy. But there are so many myths surrounding this process you might be intimidated or afraid of the process.
Bankruptcy is designed to help people recover from their debts and start fresh and there are many benefits people find from filing.
One of the main benefits people find from filing bankruptcy is that it stops their creditors from contacting them. Once you file for bankruptcy, an “automatic stay” is put in place which halts all collection attempts from all your creditors.
This process can also halt foreclosure and eviction and prevent your utilities from being disconnected. Getting relief from the constant calls and messages about overdue bills and debts and being able to stay in your home can help reduce your stress and let you focus on recovering from your debt and moving on.
Depending on the type of bankruptcy you file, some of your debts may be discharged after filing bankruptcy. This means you are no longer responsible or liable for these specific debts and do not have to repay them. This order is permanent and can let people get a fresh financial start after filing, without the weight of their past debts.
These are two of the main benefits people can gain from filing for bankruptcy. If you think this may be a good option for you and your situation, talking to an experienced bankruptcy attorney can help you make the best decision for your circumstances.