Dealing with creditors can be one of the most stressful times in a person’s life. Creditors can be relentless, and for the debtor receiving numerous collection calls, threats or collection letters, life can be just short of a nightmare. It often takes a debtor getting to their breaking point before they give in and file bankruptcy. If this is where you are, read on.
If you have never thought of filing bankruptcy, now may be the time. Bankruptcy might be not only your only way out of debt, but for many it is the best way out. Many people fear that filing bankruptcy means they will lose everything they own, but when it comes to asset protection, bankruptcy usually helps more than it hurts.
It is true that a trustee will list all of your assets to see if you have anything of value that can be liquidated for funds to pay your debtors. However, there are many items that are exempt from liquidation in bankruptcy. For instance, in the state of Wisconsin, your home or property is exempt if it is valued at less than $150,000 for couples or $75,000 for individuals.
Wages and most retirement accounts are exempt. Insurance policies, prepaid funeral plots and many other personal property items are exempt. A bankruptcy attorney can provide a full list of the current exemption amounts allowed.
If you are facing foreclosure of your home or repossession of a car, filing bankruptcy stops these processes immediately. You have the option of reaffirming the financed debt(s) and setting up a payment plan that allows you to keep your home and/or car while getting back on track with your payments.
In addition to sset protection, bankruptcy stops the calls and letters. Your creditors must stop debt collection activity immediately once notified of your bankruptcy filing. This is one of the biggest advantages. Once you file bankruptcy, your debts are in the hands of a bankruptcy trustee, and you no longer have to deal with creditors.
In a Chapter 7 bankruptcy, most or all of your unsecured debt may be discharged, giving you a brand new financial start. If you file Chapter 13 bankruptcy, your debts are negotiated and reorganized into an affordable payment plan that lasts from three to five years. Chapter 13 helps by getting you back on track and giving you the ability to make reasonable payments.
Don’t suffer under the constant stress of debt and collection efforts! Seek legal advice and see how you can get your life and peace of mind back.