Overwhelming debt can have a serious impact on many aspects of our lives. The longer we continue to struggle with it, the more of a negative effect they can have on us. The stress alone can place serious strain on our health and well-being but it doesn’t need to be this way. Bankruptcy is an amazing financial tool which can greatly improve the lives of those struggling to stay on top of their bills. In this blog I’m going to discuss three of the most significant ways in which our Minneapolis Bankruptcy Lawyers can help you take back control of your lives and your finances. Let’s begin.
Bankruptcy Will Stop Creditors From Harassing You
If you fall behind on your debt, it is very common for your relationship with creditors to deteriorate. Your conversations with them often become very straightforward and focused on determining when a defaulted balance can be brought current and where your income is going. It can be very uncomfortable to be bombarded with repeated phone calls of this nature. In this situation, typically, you’ll tell the creditor what the creditor wants to hear because you feel obligated and would like to negotiate a favorable agreement. However, freely disclosing financial information to your creditors like this when your debts are in default is not always wise.
For example – If a creditor finds out where you work the next thing you know the creditor’s trying contact you there in attempt to collect the debt. This just creates more unwanted stress in your life and strains your relationship between you and your employer. Filing for bankruptcy will immediately halt harassing phone calls and stop frustrating attempts to collect on your dischargeable debts. It does this by initiating an injunction, also known as an Automatic Stay, which requires all collection efforts against you, by law, to be suspended pending your bankruptcy.
Bankruptcy Will Stop Wage Garnishment
There are a number of types of withholding deductions people have in their paychecks, such as tax payments, and child or spousal support, which bankruptcy cannot eliminate. However, in almost all other instances bankruptcy will halt wage garnishments immediately. It can be incredibly difficult to have an unexpected deduction appear on your paycheck. It can be even more burdensome to know it will be there on each pay day until the debt is resolved. Many of us live paycheck to paycheck and these anticipated funds are often already allocated to some other essential expense. Some individuals save responsibly. Those individuals collect what they can in a savings account while they attempt to work out arrangements with creditors. Often, they sadly discover one day that their entire bank account has been cleared out and applied to the balance of a defaulted debt. When creditors take actions such as this, it can make us feel powerless in our effort to recover from financial difficulties. It doesn’t need to be this way. By filing bankruptcy and with the help of our Minneapolis Bankruptcy Lawyers, you can immediately halt wage garnishments and bank levies under the same automatic injunction which prevents creditors from continuing to call and harass you which we discussed previously.
Bankruptcy Will Improve Your Credit
In many cases, bankruptcy is exactly what our clients need in order to get a fresh start and begin to revitalize their credit rating. When you continue to struggle with debts by making small payments as you can, the past due balances are still reported to credit reporting agencies. It continues to negatively impact your score in a number of ways. The amount of the debt, the length of time the account has been in default, and date in which the last payment on the account was made all play a role in your credit rating. Filing bankruptcy with one of our Minneapolis Bankruptcy Lawyers can stop the clock on these aging debts and give you a firm foundation to begin rebuilding your credit. There’s no way to candy-coat it. Creditors and lenders are not thrilled to see a bankruptcy on your credit report. However, I assure you. It is far more common than you suspect. It’s also much less damaging than leaving defaulted debts “sitting there” to continue to erode your credit rating. Following your bankruptcy, you will again be able to apply for new lines of credit and financing without all of your old defaulted balances there to drag you down.
Contact A Minneapolis Bankruptcy Lawyer
Here at Kain & Scott in Minneapolis we’re not going to judge you, because we know many of our clients have had enough of that already from their creditors and lenders. We’re simply in the business of getting you the help that you need as quickly as possible so that you may begin the recovery process. We understand the value of providing superior services to the community and we enjoy sending our clients back out into the world of credit and financing with a new lease on life and a positive outlook for the future. We grow through the relationships we build with our clients and the community. We humbly ask that you allow us the opportunity to discuss your finances with you so that we can see how best we can get you the help you need to achieve your goals in life!
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