3 Reasons You Should File For Bankruptcy

If you find yourself in excessive debt, and you are not sure what you should do, you may want to consider filing for bankruptcy. Bankruptcy is a legal option that you should consider if you are in serious debt and you don't see a way out. If you are not sure if you should file for bankruptcy, here are three good reasons you should be contacting a bankruptcy attorney.

Reason #1: Stop the Calls from the Credit Collectors

If you are getting phone calls every day from debt collectors, it may be time to file for bankruptcy. If you have multiple accounts that you are more than four months behind payments on, you are going to be getting multiple phone calls every day from collectors who are trying to get you to pay them back. You may get phone calls on your various personal numbers and even at work. You could also get extensive mail.

Getting all these calls can be stressful and can downgrade your quality of life. If you want all these calls to stop, filing for bankruptcy is a smart option. Filing for bankruptcy will stop all credit actions against you, and you can answer your phone again without fear about who is on the other end.

Reason #2: Get Rid of Your Debt

Another reason to file for bankruptcy is that it provides you with an opportunity to get rid of some of your debt. There are certain types of debt that you can have completely erased with bankruptcy. For example, you have personal loans, overdue utility bills, medical bills, and credit card debt wiped out with Chapter 7 bankruptcy. There are certain tax debts, if they are old enough, that can be forgiven as well.

You can't get rid of debt such as student loans, child support, or newer tax debt. However, you may get an opportunity to restructure that debt, and with the other debt wiped clean, you will be in a better position to deal with any debt that wasn't wiped away.

Reason #3: Build Up Your Credit

Many people fear to file for bankruptcy because they think it will ruin their credit scores. However, the truth is if you are in so much debt that you can't pay your bills, and you are getting late notices and collection agencies chasing you, your credit score is suffering anyways.

Getting rid of all your debt, and moving forward with better spending habits, can give you an opportunity to rebuild your credit by showing that when not saddled with unreasonable debt, you can move forward.

If you find yourself in a position where you are in excessive debt, contact a bankruptcy attorney or law firm services. Filing for bankruptcy will stop the collection calls, allow you to discharge most of your debt, and provide you with a positive path forward to rebuilding your credit.