Having more bills than you do money is a tough position to be in. For many people, their normal bills aren’t the issue. The credit cards and medical expenses are the ones that are the problem. For these individuals, filing for bankruptcy might be beneficial.
There are many different things to think about when you are considering bankruptcy. One of these is how it will reduce the stress on your life in the upcoming weeks. One of the biggest stressors for people who are in debt is having to deal with collection attempts. When you file for bankruptcy, these stop thanks to the issuance of the automatic stay. You can answer your phone and check your mail in peace when you have this in place.
We know that you might be concerned about what the filing will do to your finances. The immediate impact is that you are going to have a reduction in expenses. The extent of this depends on what kind of bankruptcy you file. If you file a Chapter 7, you aren’t going to make payments to the bankruptcy court. If you file a Chapter 13, you will be placed on a payment schedule.
While some people think about how this will impact their credit report, they might not need to worry about this. The period immediately following a bankruptcy filing is one during which you can learn how to use your money and credit responsibly. Living off of your income only instead of relying on credit helps to put you in a good financial position for when you do start rebuilding your credit.