Declaring Bankruptcy and a Fresh Start

Businessman BankruptEven with overpowering debts, some people don’t want to entertain the idea of declaring bankruptcy. While filing for one has some repercussions, it can also give you a fresh start. If your debts are out of control and you can no longer pay your creditors, bankruptcy may liquidate your assets to repay the debts or help you create a repayment plan.

Bankruptcy attorneys from Barski Law Firm PLC note that under the protection of bankruptcy law, you can discharge or pay off your debts, depending on the type of bankruptcy you file for. Here’s how bankruptcy can give you a fresh start:

Creditors Can’t Harass You

When you file for bankruptcy, all debt collection activities stop. This means that creditors can’t call, pester, or harass you to pay back their money. Bankruptcy can allow you to live a normal life again by stopping all creditor contacts such as calls, texts, emails, letters, and subtle threats.

Stop Wage Garnishment

With wage garnishment, the court will require an employer to withhold a certain amount of an employee’s salary to make debt payments. The automatic stay in bankruptcy stops garnishment, which is also a form of collection action. While the case is proceeding, creditors cannot seek new garnishments.

You’ll Sleep Better

As bankruptcy stops credit collection and helps you start a new life, you can sleep better. There’s also less stress and reduced mental burden. Just be sure to work with an experienced bankruptcy attorney when going through a bankruptcy case. The right lawyer can answer all your questions and explain how the law applies to your situation.

You’ll Get Some Credit Education

According to the Federal Trade Commission, filing for bankruptcy protection requires to you complete a debtor education course and credit counseling from a government-approved organization. This can give you an opportunity to look back and learn how you got into trouble, as well as provide helpful tips on managing your finances better.

If you find yourself with spiraling debt and in need of a fresh start, talk to an experienced bankruptcy attorney. This is to learn more about the law and find out if bankruptcy is right for your situation.