I often hear my clients say that they don’t want to file for bankruptcy because it represents the end of everything. While true in some respects, there is a better way to look at it: bankruptcy is a new start on your financial future!
Bankruptcy is the end of old debts
Filing for a Chapter 7 bankruptcy is the end….the end of creditors harassing you by phone and mail…the end of garnishments of your bank accounts and paychecks….the end of having to be afraid to answer the phone. The minute you file for bankruptcy, the automatic stay starts working to keep debt collectors away. Creditors and debt collectors are prohibited from contacting you about those old debts for all time, unless they go through a lot of trouble to get permission from the Bankruptcy Court.
There are exceptions, of course. The most common exceptions I see are student loans, alimony and child support, and taxes.
Get a fresh start
Once you have filed for Chapter 7, and assuming you get your discharge at the end of the case, you’ve received the gift of a new start on life in your finances. With most of your old debts gone and the garnishments stopped, you should have more money each month to take care of the necessities. Hopefully you also have enough money left now to save for both a rainy day and for retirement! Wise financial management can help keep you out of debt. In fact, you will take a brief financial management class before you get your discharge.
While I can’t endorse any other providers, in my own financial affairs I listen to Dave Ramsey and Clark Howard. They’ve saved me a lot of grief over the years.
Get the help of an attorney for your Chapter 7 bankruptcy case
Many people choose to go through bankruptcy without the help of an attorney. These are complicated cases. If you do it yourself, you might get through it just fine. If things get complicated, though, you will definitely benefit from having an attorney’s representation! There’s a reason I spent three years in law school and every year spend another fifteen to thirty hours in continuing education – there’s a lot to learn and legal cases can be wickedly complex.
Every case is different and so my fees are determined on a case-by-case basis. Payment plans are available both for attorney fees and the court’s filing fees. Most people are surprised at how affordable a bankruptcy attorney is, once we get a chance to explain how it all works.
Reading this post does not create an attorney-client relationship. This post should not be construed to constitute legal advice, nor is it a solicitation to provide legal services. We are a debt relief agency providing assistance to debtors under the Bankruptcy Code.