Thursday, August 25, 2016
How Bankruptcy Can Give Debtors A Fresh Financial Start
If you are not bringing in enough money to pay all of your bills each month you might be wishing for the chance to have a “do over”. Bankruptcy is just this opportunity, and with careful planning you can put yourself on the road to financial recovery and eventually end up in a better financial spot. If this sounds like something that you need to explore, considering the benefits of bankruptcy may help you to make a decision about what is best for you.
Bankruptcy is designed to give financial relief to the honest, but unfortunate debtor. This means that if you have accumulated more debt than you can service, you should look at how bankruptcy will help you start over. Here are a few ways bankruptcy will give you a fresh financial start:
• Unsecured debt, such as high interest rate credit cards with balances that never seem to go down no matter how many monthly payments you make, can be either eliminated or significantly reduced.
• Some secured debts, like car loans, can be reduced so that all you are responsible for paying is the value of the collateral rather than the inflated balance due.
• Lenders are required to leave you alone when you file a bankruptcy case, and cease all collection efforts including garnishments and lawsuits. This means your paycheck could increase when money is no longer held out to pay creditors that have sued you and obtained a judgment. With extra money in your pocket you are able to focus on paying the things you need to survive, like house and car payments and even your grocery or utility bill.
Every now and then every one of us can get underwater with our budget. Finding ways to come up for air is hard, but with bankruptcy you are given a real shot. The prohibition against creditors contacting you the minute you file a case gives you the chance to catch your breath and figure out a budget that works. When you no longer have to pay some of your debt, or are allowed to pay a reduced amount, you wind up with more money each month and can allocate that money to things you need. If you are having a hard time paying all of your bills each month, call us to find out how you can start over with your finances and get back on track.
For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.