The decision to file for bankruptcy should not be taken lightly. I’ve addressed a few of the more common questions that come up when people are considering bankruptcy.
Will filing for bankruptcy stop creditor harassment?
Handling the continuous onslaught of phone calls and voicemails from creditors can be stressful. Fortunately, bankruptcy gives you the ability to stop the creditor harassment. If you decide to move forward and file for bankruptcy, your filing will result in an automatic stay order. This order will make it illegal for creditors to call you anymore. They will no longer be allowed to collect on your debt. This is one of the benefits of filing.
What is a debt discharge in bankruptcy?
A debt discharge wipes out all your previous debts owed. When you file for Chapter 7 bankruptcy, assuming you are eligible to do so, you will get a debt discharge. This means that you will not have to pay off your previously owed debts. It is important to know that not everyone qualifies for Chapter 7 bankruptcy. The best way to understand if you qualify and to investigate your other options is to speak with a bankruptcy lawyer.
Does filing for bankruptcy ruin my credit?
Bankruptcy is an effective means to take back control of your spiraling debt. Often times, people that are considering filing for bankruptcy have damaged credit to begin with. Many of these people see their credit scores actually improve not too long after filing.
Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Contacting a bankruptcy law firm MA can help you get a fresh start. If you are thinking of bankruptcy in Massachusetts we can help.
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