Learn five ways bankruptcy can make your life better
We see people in our office every day from all walks of life – white collar professionals to blue collar workers, married and divorced, younger and older – that are in financial trouble and desperate for a solution. Usually it's a major life event that derailed them – like a divorce, accident, illness or bout of unemployment. And it can take a major life event – like filing bankruptcy – to set things right and create a space for resetting the clock on your financial future. If you're mired in unmanageable debt, here are just a few of the ways that bankruptcy can make things better...
#1 Put an end to the stress of collections
If you're behind on bills, you're getting calls from creditors demanding payment. Most collections agents are ruthless and will call you day and night and make a nasty habit of harassing you on the job hoping to embarrass you into paying up. But if you don't have the money to pay, it feels like a hopeless cycle of threats and bargaining for more time. That's not good for you.
#2 Wipes out most of your debts for good
There are some debts that bankruptcy can't get rid of – your mortgage or car loan for instance – but most unsecured debts can be vanquished. Credit card bills, medical bills and second mortgages or home equity lines of credit that exceed the equity in your home can be wiped out. Long standing tax bills may be discharged under certain circumstances and, in some cases, student loans can be reduced or forgiven.
#3 Stops many garnishments
If you're being garnished, filing bankruptcy will put an end to it immediately unless it's for a child support or alimony obligation. And the stay can be made permanent if it's related to a debt that can be discharged in the bankruptcy. Not only that, but if you've been garnished for more than $600, you can likely get a refund on the what was previously garnished.
Unpaid bills can result in garnishment and bankruptcy can stop it and get you a refund
Image source: Buzzle.com
#4 Allows you to keep your stuff
When people come into our office, they're worried that they will lose their possessions if they file for bankruptcy, but that's just not true. If you're current on your mortgage and don't have a ton of equity, your house is safe. If the equity in your car isn't excessive, you'll also be able to keep it. And your clothes, TVs, computers and furniture will also be safe.
#5 Give you breathing room to get back on your feet
The main thing that bankruptcy offers is peace of mind and the chance for a fresh start. When you're drowning in debt, every waking moment can feel like you're under an incredible weight. You may fear the ringing of the phone and dread calls at work that humiliate you. You can't plan for the future because of the pressures of the present. Bankruptcy gives you a reset on all that.
To find out if your debt circumstances are a fit for bankruptcy relief, contact the law offices of John T Orcutt to schedule a free consultation at one of our convenient North Carolina locations. Get your financial fresh start today.