If you are like a lot of Americans, you may feel bogged down by debt. If you feel like you cannot dig yourself out, here is how filing bankruptcy might benefit you.
You Cannot Afford Your Monthly Payments
If your debt is making it difficult for you to pay for necessities, you may need to think about bankruptcy. If you cannot pay off your debt in five years with your current income, then bankruptcy may be the best option. When you discharge your debts, you can pay for what you need. To discuss the types of bankruptcy, you may be eligible for, you may need to contact a bankruptcy attorney Edmonds WA residents rely on.
No one wants to be harassed by debt collectors. When you don’t pay your credit card or medical bills, those bills can be sold to debt collectors. While it is illegal for debt collectors to threaten or call you after certain hours, they can make your life difficult with calls every day. When you file bankruptcy, the debt collectors have to refrain from collecting the debt.
You Need a Fresh Start
While there are some debts that bankruptcy cannot cancel, it does provide you a fresh start away from many of your previous debts. Credit card bills, medical bills, civil judgments and more can be discharged when you file bankruptcy. While your credit score will take a hit, you can rebuild it. After one year, most people begin to see an improvement in their credit scores. It’s easier to get back on top of your finances when you don’t have to worry about a suffocating amount of debt.
While bankruptcy is often the last resort for some people, it is an effective strategy to wipe out previous debts and rebuild your financial health. Since it is a serious decision, it is important to discuss your options with a bankruptcy attorney to understand the complexities.