Stop Collection Calls and Harassment
When you file for bankruptcy, creditors and debt collectors must stop their attempts to collect debts. This means you’ll no longer receive calls, emails, or letters from creditors, allowing you to relax and focus on your financial recovery. Additionally, once your bankruptcy is discharged, the debt is completely wiped out, and you don’t owe anything to your creditors anymore.
Reorganize or Discharge Debt
Depending on your situation, there are two types of bankruptcy for consumers: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is designed for individuals who have no or little income and seek to get rid of most of their unsecured debts such as credit cards, medical bills, and personal loans. Chapter 13 bankruptcy, on the other hand, allows you to reorganize your debts and pay them back over a period of three or five years. With Chapter 13, you can keep your property while catching up with your past-due payments.
Protect Property
One of the common misconceptions about bankruptcy is that you’ll lose everything you own. However, bankruptcy laws offer a range of protections that can help you keep your property. Depending on your state, you may be entitled to certain exemptions that safeguard your assets such as your home, car, and personal belongings.
Improve Credit Score
Although bankruptcy stays in your credit report for up to ten years, it doesn’t mean that your credit is ruined forever. In fact, by discharging your debts, you’ll eliminate the negative items that have been dragging down your score. After bankruptcy, you’ll have a fresh start to rebuild your credit. One way to begin rebuilding your credit score is by getting a secured credit card, making timely payments, and keeping your credit utilization low.
Relief From Stress
Dealing with debt can take a toll on your mental and emotional well-being. Filing for bankruptcy can be an empowering decision that gives you the relief you need. Once you file for bankruptcy, you can finally put an end to harassing phone calls, wage garnishments, and legal proceedings. You can redirect your energy to activities and practices that improve your life, such as getting a new job, spending time with your family, or pursuing a hobby.
Filing for Houston bankruptcy can seem like a daunting choice, but it can be the best decision for your financial future. Bankruptcy can help you manage your debts, protect your property, and relieve the stress that comes with unpaid bills. However, before you file for bankruptcy, it’s crucial to speak with a qualified bankruptcy attorney who can guide you through the process and recommend the best course of action. Remember, bankruptcy is not a sign of failure but rather an opportunity to start anew. With the right mindset and strategy, you can transform your financial life and achieve a brighter future.