Being in debt can not only take a toll on your income, but it can create anxiety, stress, and unnecessary struggling in day to day life. All of this can make a person feel helpless, as if they will never be able to remove the looming debt that is hanging over them. If you are trying to find debt relief there is one option that may be able to help you; bankruptcy.
How To Find Debt Relief With Bankruptcy
Bankruptcy has a bad reputation, and while there are drawbacks, it can serve as a clean foundation that you can anew on. A few advantages of bankruptcy include:
- Collections. When you file for bankruptcy an automatic stay will be placed on all of your accrued debt. This prevents collection agencies from taking action against you, repossessing property, or contacting you in any way. Filing may also help prevent wage garnishment, evictions, or utility shutoffs, though this can be dependent on the type of bankruptcy you file, and where you live. Speaking with a bankruptcy attorney about your situation can offer insight as to what exactly to expect in this instance.
- Exemptions. While many think they will lose property by filing for bankruptcy, with certain exemptions this can be avoided. Depending on your situation, working with a bankruptcy lawyer can be beneficial when looking into taking advantage of these exemptions.
- Credit. While a bankruptcy will remain on your credit for 7 to 10 years, this doesn’t mean your credit score stays in the red. As soon as you’ve filed you can begin improving your score right off the bat. Without having to worry about so much debt bearing down on you, this can make that process even easier than before.
- Credit Cards. When filing for bankruptcy you will lose your credit cards; though some may still be kept, this is a rarity. In any event, credit card debt is the most common form of debt, and as such is the number one reason for filing for bankruptcy. Not having that temptation constantly in your wallet can help you adhere to your budget and help prevent the future accumulation of debt.
- Counseling. Many debtors are required to undergo credit counseling when filing. While this might sound tedious, it actually can be quite helpful. These sessions can help you work on smart ways to balance your budget, and teach new spending and saving habits.
A New Start
When trying to find debt relief you need an option that will give you a fresh start. Without collectors blowing up your phone and hounding you at every turn, you can focus on saving what you can, and building up your credit once more. Bankruptcy shouldn’t be seen as something to be avoided, in fact, for many cases this can be the best option for starting over. If you have specific questions, seek a bankruptcy law firm that offers consultations, explain your situation and see what they recommend. Often times it’s beneficial to work with an attorney, as they can better explain every step of the process. Ultimately, if you are struggling and desperate for debt relief, this is one option to seriously consider.