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5 Ways Life Improves After a Bankruptcy

| Feb 14, 2018 | Uncategorized

Answering Phone

The decision to file for bankruptcy is usually made after a very challenging time. The people that reach this point have been overwhelmed by debt are sometimes unable to meet their basic needs and are in fear of losing their home or vehicle. Depression and fear are common emotions related to bankruptcy, but there are reasons to have a sense of optimism instead.

Answer the Phone

People screen phone calls when they are in debt to avoid collection calls. There is no reason to feel fear that a creditor is on the other end of a phone call once you file for bankruptcy. Creditors cannot legally continue their debt collection efforts after they receive a notice of the pending bankruptcy or once the debt is discharged.

Learn About Credit
Learn more about debt and other financial matters. A credit counseling class is a requirement for everyone filing bankruptcy. It is an opportunity to learn valuable information that can prevent future financial problems. The classes help people to identify mistakes they made in the past so they can avoid a reoccurrence in the future.

The potential to learn new skills is there even when a job loss or health issue is the cause of the bankruptcy. People often have a renewed determination to build an emergency fund or to seek out better insurance protection after a bankruptcy. There are no guarantees that anything could have prevented the financial crisis, but being proactive provides some security.

Improve the Future
People overwhelmed by debt spend a large percentage of their earnings on late fees and high interest rates. It is impossible to save for the future when living paycheck to paycheck. A discharge of the debt allows people to have some room in their budget to put towards their future.

Make the most out of the money that is saved when you erase your debts. Take a class, increase safety and home value by performing house repairs, and be a dedicated saver Earmark a specific amount each week to put into a savings account. It reduces the risk of future credit card debt when emergencies arise, and it ensures a more comfortable retirement.

Boost Credit Scores
Credit scores fall fast when late or missing payments begin to appear on the reports. The scores drop even faster when you transfer your debts to a collection agency. A bankruptcy will remain on a credit report for seven years, but it is offset by paying bills on time after the discharge. The scores will rise in about a year, and sometimes even sooner

Save Your Property
Bankruptcy protection helps to protect homes and vehicles. Bankruptcy puts foreclosures and repossessions on hold. The break gives people the time to find a way to make their loan current so that they can keep their property. Of course, bankruptcy is also a way to remove a burden if a mortgage or vehicle payment is too high or if you owe more than what it is worth.

At Phoenix Law , we frequently consult with clients that have done all they can but are still overwhelmed with debt. Every case is different, and the goals of each client are not always the same. Luckily, the debt relief options available today offer flexibility to help people keep their property or to repay their debts without constant collection calls.

We understand the importance of home and family. We can discuss your options and find a way for you to have more time to spend with the people you love instead of worrying about your bills.