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3 reasons to make debt relief part of your New Year’s resolution list

On Behalf of | Jan 23, 2017 | Bankruptcy |

Making ends meet is difficult enough. However, there are many people who struggle under an extremely heavy debt load, and getting out from under that financial burden is or should be a top priority. If you or someone you know is in this situation, then perhaps debt relief should be at the top of your New Year’s resolutions list. If you are considering debt relief options, the following information may help you make 2017 the year you are finally liberated from an unmanageable debt burden by filing for personal bankruptcy.

Stop bill collection efforts

No one likes to be contacted by a bill collector. For many people, the steady flow of calls at home and work and letters is as stressful as the debts themselves. Although multiple laws and regulations are in place to limit many debt collection tactics, the rules are often broken regularly, especially if you don’t know your rights. The end result can be a continuous barrage of harassing phone calls at all hours and threatening letters. Filing for bankruptcy immediately STOPS all calls, letters and other bill collections efforts and may provide a final resolution by eliminating all of the underlying debts.

Reduce or remove a mountain of credit card debt

Credit card debt is an insidious thing; it often begins with small, insignificant purchases and tends to creep up over time. Because of the high interest rates charged by card issuers, many consumers quickly become overwhelmed when they look at their credit card statements, and realize that repayment is nearly impossible. Contacting the credit card companies and asking for a reduction in interest rates and fees, or even a reduction of the debt itself, while an option, is almost always ineffective and may even result in unwanted IRS taxes, penalties and interest. As a result, many people are simply unable to gain control over their credit card and other debts. Bankruptcy offers the chance to begin anew, as the discharge process will eliminate most forms of unsecured debt.

Stop wage garnishment or car repossession

Once creditors sue you an obtain a judgment, they are free to garnish your paycheck or even seize your car or other personal property. When facing serious debt issues, the last thing that you need is to lose a portion of your paycheck, or have your vehicle repossessed. Imagine making ends meet with even less money and without your car! Filing for personal bankruptcy will put an end to wage garnishment, even if it is already underway, leaving you free to use those funds as needed. It will also stop all repossession efforts, which can ensure that reliable transportation is available for keeping one’s job and handling personal and family responsibilities. Bankruptcy even halts the foreclosure process.

For those who are considering their debt options in the New Year, bankruptcy certainly deserves some thought. Many people have struggled under a heavy debt load for many years, and are ready to find relief from what has become an unmanageable level of debt. While bankruptcy is rarely anyone’s first choice of action, it is a valuable tool that can help regain financial stability, and return some normalcy to your life. Having a knowledgeable and experienced Bankruptcy attorney on your side to review your situation and guide you through the process is invaluable. Discuss your circumstances with us and let us determine your best course of action. It is truly a New Year’s resolution worth keeping.