Whether it is credit card or medical debt, being financially underwater can put a lot of stress on you. The thought of owing so much money can even make you lose sleep at night.
If you file for bankruptcy, you can get rid of the majority of your debts. Here are five great benefits of filing for bankruptcy.
You Will Get Rid of Your Debt
One of the biggest benefits of filing for bankruptcy is that it will get rid of your debt. Once your bankruptcy gets approved, your unsecured debt, like medical bills, credit cards and car payments, will get discharged. You will no longer have to lose sleep at night thinking about all of your debt.
You Will Stop Getting Calls from Creditors
When you are drowning in debt, you receive a lot of calls from your creditors every day. Some of these creditors can get pretty aggressive and even threaten you with jail time. If you file for bankruptcy, these creditors will not be allowed to call you anymore. If your creditors do attempt to contact you, the court can penalize them.
You Will Not Lose Your Home
Many people are afraid to file for bankruptcy because they think they will lose their home. However, if your home's equity is within the designated amount, the bank cannot take it away from you.
It Can Improve Your Credit Score
Although bankruptcy will initially lower your credit score, it can help you get a better credit rating over time. Bankruptcy wipes out all of your unsecured debts, so you can get a financial fresh start. You can reduce your debt-to-income ratio and start making loan payments on time, which can improve your credit score.
Your Wages Will Not Be Garnished
If your accounts go into collection, your creditors could garnish your wages. A certain amount of money will be taken out of your paychecks, which can negatively affect your finances. If you file for bankruptcy, your creditors can't garnish your wages anymore.
As you can see, you will receive a lot of benefits from filing bankruptcy. If you think bankruptcy is the right choice for you, schedule a consultation with an experienced bankruptcy attorney such as Arthur M Richard soon. A bankruptcy attorney will help you with the paperwork and get your case moving in the right direction faster. Most bankruptcy lawyers offer free initial consultations, so you have nothing to lose.
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