When you are dodging debt collection calls and receiving past due notices on your bills, it can feel as if you are sinking further and further into a hopeless situation. After penalties and interest accrue what started out as manageable obligations can soon be too much for you to handle. If you are in this situation, bankruptcy can provide you with an opportunity to take control and get the new start you need. Here are some considerations about what bankruptcy can do for you:

One of the primary benefits of filing for bankruptcy is the automatic stay. The stay becomes active when you file for bankruptcy protection and in most cases can stop creditor debt collection efforts and even lawsuits right in their tracks.  The stay can also help debtors become current on secured debts such as home and auto loans which permits the debtor to keep his or her property during the case.

When your debts have spiraled out of control, you can find yourself in an endless and vicious cycle of paying just enough to meet minimum payments, then being late triggering fees and interest increases and falling further behind. Filing for bankruptcy means you can stop adding to these obligations and begin to make a plan to solve the problem and attain discharge.

Taking action to deal with your debt rather than allowing it to get worse is a positive and powerful step. Choosing bankruptcy is the beginning of a more extensive process wherein you will need to look at your circumstances and consider changes. If your spending habits and lack of preparation are the reason you have reached this point, now is the time to commit to budgeting and holding yourself accountable. Your situation may instead be due to a catastrophe such as a significant illness or injury. If this is the case, it would be best to use your fresh start to put your debts behind you and develop stronger savings and budgeting habits. Regardless of what brought you to this place, you can use this experience as an opportunity to create a workable and effective plan for your financial health.

Our office has experience helping clients through managing their debts and can assist you in making the most of the bankruptcy process. Contact us online or by phone at   517-459-9518  if we may be of assistance.