If you’re thinking of filing bankruptcy, then you’re far from the only one. About 1.5 million Americans file bankruptcy every year!
Although filing for bankruptcy may seem scary at first, it can actually be a lifesaver. By choosing to work with an attorney on the bankruptcy filing process, you can save yourself a ton of stress.
So are you ready to learn how filing for bankruptcy can help you ease your stress and start getting debt relief? Let’s take a look at a few of the ways that is possible.
1. You Avoid Collections
When you’re in some serious financial trouble, you usually owe a ton of debt. And, in order to get out of that debt, you might end up taking out even more loans and digging yourself into a deeper hole! Once you start to miss multiple payments, your creditors might come after you in the form of debt collectors. While that’s completely within the right of the company you owe money to, it can be extremely stressful for someone in dire straits. With every call you get, you can feel more overwhelmed and helpless!
When you file for bankruptcy, however, all that goes away. You won’t be receiving collections calls anymore because you’ll have been declared bankrupt. Since filing bankruptcy legally prevents creditors from contacting you, you can take a weight off your shoulders and say goodbye to the harassment you once took for granted.
2. You Stay Out of Lawsuits
Another major issue many people in serious debt find themselves in is lawsuits. If you keep avoiding debts and ignoring those pesky debt collector calls, your creditor can end up suing you for the money you owe. When things go to court, everything gets more complicated. Suddenly, you’ve got to worry about finding huge sums of money for legal fees. Plus, you could get slapped with additional fines, and penalties. That’s not to mention the stress of going to court in the first place. You can be left feeling pretty frazzled and stressed out. Just like how debt collectors can’t contact you if you file for bankruptcy, they won’t be able to sue you for debt-related cases, either. That can keep you out of court and save you a ton of stress in the long run.
3. You Keep Wage Garnishments at Bay
When you’re in serious debt and can’t seem to find the funds to pay off your bills, you might find that employers garnish your wages. Wage garnishment is when creditors take money from your paycheck to pay off your debts. Wage garnishment is an extremely stressful situation to find yourself in, however.
When you’re struggling to make ends meet and a company garnishes your wages, you’re suddenly left with too little money to pay rent or buy groceries. Talk about stressful! When you file bankruptcy, the automatic stay that goes into effect puts a stop to any current wage garnishments. On top of that, it prevents creditors from garnishing your wages in the future. The result? You suddenly don’t have to worry about the stress of watching your paycheck disappear and can instead focus on getting out of debt.
4. You Steer Clear of Foreclosure
For most people, one of the worst things that can happen is to lose their homes. This leaves them without a valuable investment and more importantly, without a place to call their own. Bankruptcy can help you avoid foreclosure in two different ways. Firstly, it may prevent your home from being seized altogether. This gives you extra security and takes away any stress you have surrounding the idea of losing your house. Secondly, in the event that your home does get foreclosed upon, you won’t have to pay your creditors any additional money. In classic foreclosure cases, you’ll typically have to pay more money after the home gets taken. With bankruptcy, however, you can avoid those fees and keep more money in your pocket to put toward paying off your debts.
5. You Eliminate the Possibility of Repossession
Just like with many other assets, when you’re in major debt, you’re at risk of having your creditors take your car. That leaves you without a vehicle to get to and from work and earn money to pay off your debts! The good news, however, is that when you file for bankruptcy, the stay that goes into effect applies to your vehicle.
While you can sell your car after bankruptcy to help pay off debt, you’re not forced to. You can keep your car without the looming stress that the repo man is going to come to seize your vehicle.
6. You Save Your Credit Score
When you’re in debt, every single action that you take puts a dent in your credit score. Sadly, most of the actions we’re forced to take when we’re in debt aren’t helping our credit score. As a result, you can wind up with such a low credit score that it becomes impossible to receive future credit. That could limit you in terms of being able to buy a car, a house, or another necessary purchase. When you file for bankruptcy, you don’t need to worry about this. After you file for bankruptcy, your debt ceases to cause a negative impact on your credit score. In some cases, it can actually cause your credit score to rise! Many people report that within just a couple of months of filing bankruptcy, they’re able to get their score back up to a healthy range.
Get the Help You Need to File for Bankruptcy
Filing for bankruptcy doesn’t have to be stressful. In fact, it can be quite the opposite – it can be a way to relieve your stress! If you’re ready to put your worries about debt behind you, our team of Colorado bankruptcy lawyers can help. Get in touch with us to schedule a consultation and to start taking control of your finances again. You can schedule your free consultation with a Colorado bankruptcy attorney by clicking here.