If you are having trouble paying your bills and are getting further and further behind every month with no likelihood to make up the missed payments in the near future, bankruptcy may be a good option for you. By filing for bankruptcy, you may be able to have your credit card debts wiped away. There are advantages and disadvantages to bankruptcy but for someone in your situation, the immediate advantages may outweigh the long-term disadvantages and allow you to start your financial life over.
After you file for bankruptcy protection, your creditors have to stop contacting you about your outstanding debts. This provision of the bankruptcy code allows people like you to collect their thoughts without a barrage of phone calls from creditors demanding money that you just don’t have to give them. Bill collectors must stop calling, sending letters, texting or otherwise contacting your or your family members right away. During this quiet time, you may want to gather your bills and your pay stubs to determine how much money you have and how much you can realistically pay on your debts.
Unfortunately, some debts cannot be included in bankruptcy. Family debts such as child and spousal support are excluded, meaning that you will be responsible for paying them even if you file for bankruptcy. If you have government-backed student loans, you will still need to repay them but you may be able to work out a reasonable payment arrangement with your lender. Your lawyers in York, PA can help you decide if bankruptcy is the best choice for you based on the kind of debts you have that you are unable to pay.
Though a bankruptcy discharge may eliminate all of your unsecured debts, there are costs to filing bankruptcy. Your credit report will show the bankruptcy filing for up to 10 years. It may be difficult in the months after your discharge to get an unsecured line of credit so you may have to pay for everything with cash for a while during your rebuilding period. As you develop a realistic budget and learn to live with limited credit, a secured credit card may be useful in reestablishing your credit. Bankruptcy lawyers in York, PA, such as Parker Law Firm, P.C., can walk you through the process so you can regain financial independence.