Why should you consider filing for bankruptcy?

On Behalf of | Aug 5, 2022 | Bankruptcy Law Basics

Making the decision to file for bankruptcy protection can be a difficult choice. If you are considering bankruptcy, it is likely because you are struggling with debt and other financial difficulties that make it difficult for you to manage your unpaid balances and escape the cycle of relying on credit cards, accumulating interest and constant calls from debt collectors. While filing for bankruptcy may not be your first choice, it could bring certain benefits that will positively impact multiple areas of your life.

Bankruptcy could offer you the opportunity to seek a better financial future for you and your family. If you are overwhelmed by debt, tired of the phone calls from creditors and trying to find a way out, there are options available. In many cases, Chapter 7 bankruptcy or Chapter 13 bankruptcy could be a reasonable way for a Tennessee consumer to address his or her debt problems and move forward to long-term financial stability.

Improvements brought by bankruptcy

As you are considering bankruptcy, you are likely already struggling with the different ways that debt can affect your life. Having more debt than you can manage is stressful, and you may feel as if there is no way out. One of the primary benefits of bankruptcy is the automatic stay, which goes to effect immediately upon filing. The specific things the automatic stay can do for you include:

  • Stop calls from creditors, as well as other types of contact
  • Prohibit harassment from debt collectors
  • Stop collection processes against you, including wage garnishment
  • Halt the foreclosure process
  • Stop any efforts to repossess your vehicle or other types of property

The automatic stay will remain in effect as long as you are under bankruptcy protection. In addition to these things, bankruptcy can also provide you with the opportunity to get rid of certain types of debts once at for all as you follow the terms of your court-approved bankruptcy plan.

A stronger future is at hand

Bankruptcy may not be your first choice, but it could be the best decision for you long-term. If you are unsure of how bankruptcy protection could specifically benefit your situation, it may be helpful for you to seek experienced insight and knowledgeable guidance regarding the specific ways that this legal process can help you confront your debt challenges once and for all.