Submitted by Rachel R on Thu, 01/21/2016 - 9:51am
Life is better without debt
Image Source: Flickr User Benjamin Staudinger
The worst part about being in debt you can’t afford and struggling to pay your bills is the stress of living from paycheck to paycheck, dealing with harassing calls from debt collectors, and feeling like there’s no way out. Even with all of these known negative consequences of excess debt, though, most consumers think that life after Chapter 7 bankruptcy will be worse. Today we dispel this misunderstanding.
After bankruptcy: More room in your budget
Most unsecured debt can be discharged in Chapter 7 bankruptcy. This includes medical bills, credit cards, older tax debts, signature loans and more. With these debts off your plate, you should have more money to devote to your living expenses so you can stay current on all your bills and focus on living life instead of battling your debt.
After bankruptcy: Collections calls end
As soon as you file bankruptcy, all collections calls from creditors will stop – by law – and for the debts that are discharged, there should be no calls again ever. This can take a lot of stress out of your life. If you’re dealing with harassing debt collectors, no doubt you cringe when the phone rings, worry about calls at work and on your cell. This will be done and over after bankruptcy.
After bankruptcy: Credit score rebound
If you’re late on your bills, have maxed your credit cards and are missing payments or only paying minimums, your credit score is likely dropping every month. As long as you remain in over your head with debt and maxed out, your score will drop or be stuck lower than you’d like. Once you file Chapter 7, and your unsecured debts are gone, you can work on rebuilding your credit score.
After bankruptcy: Set aside savings
People that are deep in debt often find it impossible to save up an emergency fund or set aside money for retirement or as a safety net. The inability to save is a sure sign that your finances are out of control. After a Chapter 7, with unaffordable debts discharged, a well-balanced budget with room built in for savings should be possible.
After bankruptcy: Peace of mind
A number of studies have linked excessive debt to stress. Coping with collection calls, the stress of scraping by, shorting one bill to pay another, and worrying that you’ll never have financial breathing room can make life difficult. After Chapter 7, the discharge of debt and end to collection calls can make a significant difference in your quality of life and peace of mind.
After bankruptcy: A brighter future
When you’re mired in unmanageable debt, it can be hard to think beyond the next bill or the next paycheck. This means it’s hard to plan for the future because it can be difficult to see a future beyond the debt. After Chapter 7, with unsecured debt gone and more room in your budget, it’s possible to plan for tomorrow – whether it’s a college fund, retirement account, or a long overdue vacation.
Bankruptcy is hope – not hopelessness…
Most consumers view bankruptcy as an option of last resort – and it is definitely a serious step. But if you’re in too deep with debt you can’t afford to pay, it’s already serious. Bankruptcy offers hope - hope for a stable financial future - hope for a life free of debt collectors harassing you – hope for a life of better opportunities thanks to less debt and a better credit score.
To find out more about how Chapter 7 bankruptcy can help you, contact the Law Offices of John T. Orcutt for a free North Carolina bankruptcy consultation. Call +1-919-646-2654 for a free consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.
Debts Hurt! Got debt? Need help? Get started below!
Serving All of North Carolina
6616 Six Forks Rd Suite 203 Raleigh, NC 27615 North Carolina
Tel: (919) 847-9750
2711 Breezewood Ave. Fayetteville, NC 28303 North Carolina
Tel: (910) 323-2972
1738 Hillandale Road Suite D Durham, NC 27705 North Carolina
Tel: (919) 286-1695
2215 Nash St. NW Wilson, NC 27896 North Carolina
Tel: (252) 234-9194
600 Green Valley Road Suite 210 Greensboro, NC 27408 North Carolina
Tel: (336) 542-5993
South Raleigh (Garner)
143 Highway 70 Garner, NC 27529 North Carolina
Tel: (919) 747-4400
4320 Southport Supply Road SE STE 300 Southport, NC 28461 North Carolina
Tel: (910) 218-8682
4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina
Tel: (910) 447-2987