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Bankruptcy is a legal process that provides debt relief for individuals and businesses. It allows them to eliminate or reorganize their debts and repay creditors over time. Though it may be a stressful process to undergo, it can often be your best choice if you feel as though you have nowhere else to go.
Relieve Yourself of Overwhelming Debt
To begin, bankruptcy can eliminate or reduce many types of debt, including credit card bills, medical expenses, personal loans, and business debts. If you have recently started struggling with an expense and are not sure how you will be able to pay it back, bankruptcy could be the right move forward. Institutions may provide different ways to assess your debt based on their nature.
Stop Creditor Harassment
As soon as you file for bankruptcy, an automatic stay goes into effect that prohibits creditors from taking any further collection actions against you. This means creditors must stop calling you, sending you bills, or taking any other steps to collect on your debt. This can be particularly advantageous for those who feel as though they cannot deal with constant messages from their creditors.
Protect Your Property and Assets
Depending on the type of bankruptcy you file and the state in which you live, some or all of your property may be exempt from seizure by creditors when you declare bankruptcy. This means your home, car, and other essential belongings are protected. It can be an excellent way to avoid liquidating specific assets, which could impact not only your quality of life but also your ability to repay future debts.
Get Expert Advice
Working with a trusted firm like Willis Spangler Starling can provide you with a variety of options for your debt relief. Take the time to interview accredited financial experts in order to have the best possible bankruptcy options available. Talk through your concerns and next steps with a professional to get a solid plan in place.
Rebuild Your Credit Score
Once you have completed the bankruptcy process, you can start to rebuild your credit score by making on-time payments and keeping your balances low on new credit accounts. This means that bankruptcy can be the light at the end of the tunnel if you find yourself struggling with building your finances while you are dealing with debt.
Bankruptcy can give you the opportunity for a fresh start financially. After completing the bankruptcy process, you will no longer be burdened by your overwhelming debt, so you can begin working towards achieving your financial goals. Start this process if you are craving a new start.
About the Author
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.