The stigma that was once attached to personal bankruptcy is nearly nonexistent since the recession caused so many people to resort to legally discharging their debts when they lost their jobs. Chances are, you know people who have filed for bankruptcy because they were not able to pay their bills after a job loss or wage reduction, divorce or unusual medical expenses. Even though your friends and neighbors aren’t advertising the fact that they used bankruptcy to resolve their financial problems, it is likely that one or more of them did.
Many people do not file bankruptcy because they have accumulated a lot of debt they are having trouble repaying. In general, people who purchase items with their credit cards fully intend to repay their debts. Often people file for bankruptcy protection to stop the creditor harassment. As soon as you file, you get a reprieve from collection activity. Bill collectors are not permitted to contact a customer while they are in bankruptcy. From the time to file until the day your bankruptcy is discharged, you won’t have to screen your calls to avoid obnoxious debt collectors. The best Bankruptcy Attorneys in Ft Wayne IN may be able to tell you exactly how common Chapter 7 and Chapter 13 bankruptcy are in your area.
There are disadvantages of bankruptcy but they are usually outweighed by the benefits. Bankruptcy Attorneys in Ft Wayne IN may explain how filing bankruptcy can affect your credit score and who may find out that you have had your debts discharged. Many times, a person’s credit score is already severely damaged by late and missed payments so bankruptcy doesn’t have a huge effect on their score. You may even find that it is easier to get a new credit card after bankruptcy than it was before you filed.
Information is power. To learn everything you need to know about bankruptcy, visit Ripkelaw.com. You can find out about the rules creditor must adhere to and the advantages and disadvantages of using the bankruptcy code to relieve the stress of constant phone calls from creditors seeking payments that you cannot afford to make.