Deciding if and when to file for bankruptcy is a decision that is unique to the individual. If you find yourself in financial trouble due to a medical issue, the loss of a job or another unforeseen economic change, bankruptcy laws are designed to help.
That said, a lot of emotions are tied to the idea of bankruptcy. Many of these are negative, and it can be easy to forget that there are many benefits to filing for bankruptcy too. In fact, some of these benefits are immediate.
- No More Contact From Debt Collectors
The moment your Rockville bankruptcy lawyer files your case with the bankruptcy court, you are protected from debt collectors. Filing bankruptcy triggers an automatic stop on all collection actions. This means an end to all phone calls, garnishments and collection letters.
- An End to Wage Garnishments
If you have any wage garnishments associated with your debt, most come to a halt once you file for bankruptcy. This happens because bankruptcy laws prohibit most creditors from continuing to collect wage attachments during bankruptcy proceedings.
- Less Guilt and More Healing
If you decide that bankruptcy is the right decision for you, the act of filing may kick off a journey of emotional healing. Bankruptcy is often associated with negative feelings of shame and/or guilt, but it’s important to remember that bankruptcy laws exist to help people, not to punish them. Instead of lamenting the past, learn from the experience and make the most of this fresh start to your financial life.
Public perception of bankruptcy is frequently misguided and incorrect. The act of declaring bankruptcy is specifically designed to provide financial relief for those who are unable to pay their creditors. It’s a smart, valuable lifeline, and while some of its benefits take time to materialize, you’ll feel others immediately.