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Filing Bankruptcy For A New Year's Debt Relief

Filing Bankruptcy For A New Year's Debt Relief
"""Now that Christmas has passed and the New Year is quickly approaching, many Americans will have to decide what to do about their debt situation. The majority of people make New Year's resolutions annually, and this year will be no exception. Getting out of debt may be the greatest New Year's resolution anyone can come up with. In the 1960s, individuals were not saddled with $10,000 in credit card debt after the holiday season. Each year, it appears that Americans continue to push their problems further down the road. At some point, it will be time to pay the piper, but there will be insufficient funds to do so. Before it's too late, it may be time to consult with a bankruptcy attorney to determine if declaring bankruptcy is a viable option for managing overwhelming debt.

There are numerous reasons to file for bankruptcy, but only a few that prevent individuals from doing so. People commonly use the excuses ""I don't want to ruin my credit"" or ""I need my credit cards to survive."" The problem with these justifications is that the credit card they cherish so much is destroying their lives. Pride and the uncertainty of living without credit are the underlying causes.

Because individuals do not want to deal with their financial issues, inaction is frequently their safest option. This works so long as the debtor can continue to make the minimum credit card payment each month. Once the consumer has missed a couple of payments, they will realize that the creditor is not their friend and will take aggressive action to collect the debt.

Chapter 7 bankruptcy is therefore a failsafe method for eliminating credit card debt. If a creditor wishes to take action against a debtor who has filed for bankruptcy, the automatic stay will prevent them from doing so. The automatic stay is one of the most effective instruments used by a bankruptcy attorney to shield the debtor from creditors. Once a bankruptcy petition is filed, creditors are notified and an automatic stay is enacted until the bankruptcy is discharged. The automatic stay halts all collection efforts and legal proceedings against the debtor. This includes telephone inquiries, letters, lawsuits, wage garnishments, court orders, and foreclosure. Creditors can only avoid this by filing a motion for relief of stay with the bankruptcy court. Typically, this is only granted for secured debts for which the creditor can demonstrate ownership.

Filing for bankruptcy in the New Year can provide the delinquent with a new outlook on life. The burden of unaffordable bills will be eliminated, collection calls will cease, and the debtor will no longer have to fret about being served court documents. Filing for bankruptcy will alleviate this tension, which is detrimental to your health. Numerous individuals use bankruptcy to eliminate their debt. Don't stress about the embarrassment associated with filing for bankruptcy. There is anonymity in numbers; in 2010 alone, more than 1.5 million Americans filed for bankruptcy to eliminate their debt. The banks have been bailed out several times over the past few years; why not use bankruptcy as a form of bailout devised for the average person?""

" - https://www.affordablecebu.com/
 

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"Filing Bankruptcy For A New Year's Debt Relief" was written by Mary under the Finance / Wealth category. It has been read 105 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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