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The Basics Of Bankruptcy Benefits

13 January 2021 by Daryl Young

If you've been struggling with financial problems, you may be thinking about filing for bankruptcy. It's a viable solution for those who are financially in over their heads, with more bills to pay than they have income coming in. When you are overwhelmed with creditor calls, facing serious financial repercussions, and looking for a solution, you should talk with a bankruptcy attorney as soon as possible. Here's a look at a few reasons why bankruptcy may be the ideal solution.

Stops Creditor Calls

Few things can add as much stress to an already-stressful situation the way that receiving creditor calls trying to collect on your past-due accounts can. Creditor calls can leave you afraid of answering your phone, stressed about your day to day life, and worried about the outcome of your current financial struggle.

When you file for bankruptcy and work with a bankruptcy attorney, your creditors legally have to stop calling you for collection. Those creditors are then bound by law to communicate with your bankruptcy attorney, which can help to ease your stress significantly. You'll be able to focus on resolving your financial situation instead of dodging harassing phone calls.

May Stop Your Foreclosure

Because collection actions and legal proceedings are legally required to stop as soon as you file for bankruptcy, working with a bankruptcy attorney might actually give you the chance to stop a foreclosure on your home. 

With collection actions ceased, this allows you the time you need to work with your attorney and your lender to resolve your default on your mortgage. At the very least, filing for bankruptcy might even give you the time to get the money that you need to get your mortgage out of default. If you pay the past-due amount in full, you can save your home.

Can Stop Garnishments

When you're already struggling financially, facing garnishments can make the situation even worse. If your paychecks, tax refunds, and savings accounts are being garnished for outstanding debts, it reduces the amount of cash you have available. When you file for bankruptcy, many garnishment actions will stop. This will give you more access to cash, which can make it easier for you to resolve your bankruptcy settlement and still make ends meet.

These are a few of the reasons why you should think about talking with a bankruptcy attorney as soon as possible if you're financially struggling. The more you understand about the benefits of bankruptcy, the easier it is to see why it could work to your advantage.

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