Going Bankrupt Isn't Such A Bad Thing

Filing for bankruptcy is never the end. Sometimes, it can actually be a good option that will save you from falling into an irreparable crisis situation. With immediate effect, bankruptcy puts an end to collection calls, wage garnishments, and lawsuits. It is a way to completely wipe away debts. Contrary to what you have always heard, bankruptcy can help increase your credit scores in the middle or long run.

When Filing for Bankruptcy is a Good Option

If your credit score is already battered and you are forced to file for bankruptcy, don't be ashamed to go for it. Once you complete this procedure, most of your outstanding debts are erased, which the bankruptcy court calls a discharge. While credit scores will not rise immediately, they will begin to improve within a few years.

Benefits of Filling for Bankruptcy

Apart from remedying your credit score, bankruptcy can benefit you in several other ways. Bankruptcy puts an end to the collection nightmare. When people lag seriously behind on their debt with more than 120 days overdue, their financial challenges grow even worse. Also balances in collections and the number of people with court judgment often grow.

When you file for bankruptcy, you get to enjoy an automatic stay that stops all collection efforts including wage garnishment and lawsuits. You will also gain freedom from credit card debt, medical bills, personal loans, civil judgments except fraud, due rents of the past, due utility bills, business debts and older tax debts.

Why Hire a Bankruptcy Attorney

Bankruptcy is a complex process. There is an elaborate paperwork to be done. At times, even a simple error can cause your case to be dismissed. If this happens, then you will end up with no relief. However, you will still have your credit scores tanked by the bankruptcy filing. A bankruptcy lawyer can guide you right from the start on how to go about the process. They may come forward to offer a free or low-cost initial consultation.  

Why consider bankruptcy

Waiting for too long can drain your assets including retirement accounts which could have been protected from creditors in bankruptcy. Do not throw good money after bad until you have no money left to seek any relief. This is a strong reason why the finance experts advise debtors to in over their heads to consider bankruptcy first in order to prevent the worst from happening.

Contact a law firm, like Dunbar & Dunbar, for more help.