Most people shy away from the word “bankruptcy” even in dire financial situations. However, bankruptcy is one of the best tools available to eliminate debt when everything seems hopeless. Here are four ways that filing Chapter 7 bankruptcy gives you a fresh start in life.
1. Relief From Creditors
When you’re harassed by creditors for unpaid bills, it feels like you’re being dragged through the mud. Once you file for Chapter 7 bankruptcy, you’ll get an automatic stay on all collections and start to see a light at the end of the tunnel. All attempts to collect debts will cease and you’ll begin the bankruptcy process.
2. Protection of Your Possessions
If you hold off on contacting a bankruptcy attorney Columbia MD because you’re afraid you’ll lose everything, know that most bankruptcies protect your possessions. This means you’ll likely get to keep your home and car. If you’re on the verge of foreclosure, bankruptcy will buy you time to renegotiate the mortgage.
3. Elimination of Debt
When you have mountains of debt, you can’t move forward especially if you can barely make the minimum payments. Chapter 7 bankruptcy eliminates unsecured credit card debt, unpaid medical bills and personal loans. You’ll be able to pay your normal bills on time and start saving for emergencies.
4. Financial Education for Your Future
In order for bankruptcy to give you a truly clean start, you must learn the skills necessary to never find yourself in this position again. During the bankruptcy process, you’ll be required to take a credit counseling and a debtor’s education course to teach you how to manage your money.
If you’re swimming in debt that’s so deep you can’t find a way out, Chapter 7 bankruptcy may be the answer. To find out how to eliminate debt without losing your home, contact an attorney today.