Is Filing for Bankruptcy Really a Last Resort?

By Tracy L. Hirsch

We’ve all heard that filing bankruptcy should be considered a last resort. The media, credit counselors, collectors, and debt relief programs claim that bankruptcy will destroy your credit and label you as a ‘failure’ from which there is little to no chance of return. This simply isn’t true. These are opinions and not based on facts.

In order to avoid filing for bankruptcy, people will sell assets, use up retirement accounts, and empty their savings, which puts them in a worse position. Comparatively, filing for bankruptcy in Kentucky can be the least expensive way to deal with debt, and can give you the quickest route to getting your life back on track.  

Here is a list of some of the benefits of bankruptcy.

1. Bankruptcy can stop foreclosures, garnishments, repossessions, and judgements liens.

The filing of a Chapter 7 or Chapter 13 bankruptcy immediately invokes the “Automatic Stay.” This is a rule in the Bankruptcy Code that immediately protects you from  your creditors and their attempts to collect a debt.

Companies that offer debt consolidation and credit repair cannot protect you from your creditors, and can actually put you in a worse financial situation.

Despite what you’ve heard, bankruptcy doesn’t need to be viewed as a “last resort.” 

2. Bankruptcy eliminates debt.

Filing for bankruptcy can help to eliminate (discharge) or greatly reduce debt with credit cards companies, medical bills, and other unsecured debt. It can even help you with owed IRS taxes.

3. Bankruptcy puts an end to those annoying phone calls.

Phone calls from creditors are not only stressful, but borderline harassment. Once you file for bankruptcy, creditors cannot contact you by phone or mail, or try to talk to you at your place of employment. If they do so, they are in violation of the law.

Even after you’re discharged from your bankruptcy case, there are serious repercussions for creditors who continue to harass you, despite being informed of your bankruptcy.

4. Bankruptcy provides you with professional legal counsel.

Once you file with a bankruptcy attorney, s/he will give you the guidance that you need to successfully complete your plan. Debt consolidation and credit repair organizations are not there to protect you. They’re actually there to exploit you by adding on interest to your already unmanageable amount of debt.

5. Bankruptcy provides a chance to start over.

A Louisville, KY bankruptcy eliminates the roadblocks that keep you from moving forward in life. We are here to reassure you that making the decision to file for bankruptcy is the first step in making a full financial recovery. If you’re ready for your free consultation, call or text Attorney Tracy Hirsch at (502) 435-2593.

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