Posted on: 5 February 2016
If you have been getting a lot of phone calls, letters and emails from creditors then you already know how stressful this can be. However, the worst part of owing so much debt you can't pay off is having it affect your life in so many negative ways. As long as you have a low credit score you are going to find it hard to obtain any new credit accounts, to buy a car and definitely to get approved for a home loan. If you try waiting out the time period for those negative accounts to fall off, it's going to take you years. Here is what bankruptcy can do for you so you can see why it may be a good option.
Stop the harassment
The bill collectors that call your home will more than likely have very strong personalities and like to toss around scary threats. Even people who don't suffer from anxiety issues can feel extremely stressed out after a phone call from one of them. They like to use scare tactics to get people to pay. However, when you don't have the money all these tactics do is make you worry more about things you can't fix at the moment. Bankruptcy stops all communications from bill collectors and for them to continue contacting you is illegal.
Get out from under the bills you can't pay
When you go through bankruptcy it will put an end to the bills that you aren't going to be able to pay off. This means, it will wipe those negative accounts off from your credit report. In this way, it will give you a clean slate so you will be in a good position for building good credit. You do want to keep in mind that a bankruptcy itself doesn't look great, so you won't be able to suddenly open new unsecured lines of credit right away.
Know where you stand
It's a great feeling to know that you are at a place where you can only go up. You want to make the most out of the opportunity. You can get yourself a secured credit card right out of bankruptcy and use it to start improving your score right away. Only spend a little bit off of it and pay more than the minimum due on time in order to see great results.
Now that you have a better understanding of what things will be like once you file bankruptcy, you should get started so you can put that bad financial situation in your past.Share