Credit card debts often start small. You use it to cover a sudden medical emergency or make ends meet during tough times. Before you know it, your credit card bills become overwhelming.
You are not alone in this struggle. Millions of Americans experience the same challenge, with the average household owing around $8,600 on their credit cards.
Amid the anxiety of your current situation, remember that financial challenges do not define your worth. Whether through Chapter 7’s fresh start or Chapter 13’s structured repayment plan, bankruptcy laws are designed to help you restore your financial health and dignity. Here are five benefits you will experience right after filing:
The collection calls stop immediately
You will no longer have to feel afraid to answer calls from the bank after you file for bankruptcy. The “automatic stay” legally requires all creditors to stop calling you. This could relieve some stress, allowing you to think clearly about your next financial decisions.
Credit card companies stop adding interest
Your credit card balances freeze immediately after filing. No more watching your balance grow every month despite your faithful payments. What you owe at filing is what you owe – period. This alone can help you save thousands of dollars in interest charges that would have just accumulated.
You can start saving money
Think about your minimum credit card payments each month. Once you file bankruptcy, that money becomes yours to use wisely. You can redirect those funds toward meaningful savings goals rather than dedicating your income to continuous credit card payments.
Freedom from wage garnishment
If you are facing wage garnishment from credit card companies, bankruptcy puts an immediate stop to it. You can have your entire paychecks again, allowing you to cover essential expenses and plan for your future.
Peace of mind returns
Perhaps the most valuable benefit of bankruptcy is the mental relief. That overwhelming weight of debt lifts from your shoulders, and you can finally see a clear path forward.
Moving forward
Bankruptcy is not just about eliminating debt. It is about reclaiming your life and your future. Every day, Michigan residents, just like you, turn the page to a new financial chapter. Speaking with an experienced bankruptcy attorney can help you understand your options for financial freedom.
