There are many reasons to consider filing bankruptcy even for those who might not have thought about the option. While filing for bankruptcy is always a significant step, it sometimes proves to be the best way to escape dire financial circumstances. As the web page at http://tulsabankruptcylawyers.net/about-the-bankruptcy-law-firm/ makes clear, there are quite a few issues that bankruptcy can resolve temporarily or permanently.
The Best Way to Put an End to Many Common Debt-Related Troubles
The mere fact of not being able to make payments on debts tends to be quite stressful and unpleasant. As many debtors discover, though, there are plenty of associated possibilities that can each become troublesome as well.
Filing for bankruptcy protection will put a stop to many of these hassles right from the beginning. From the very moment that a debtor’s filing is received and acknowledged by the bankruptcy court, protection from issues like the following becomes available.
- Foreclosure. Many people who are in serious financial trouble resist acknowledging that fact for too long. Failing to keep up with minimum payments on credit cards might not seem especially worrisome, but the threat of foreclosure on a home will almost always be much more difficult to ignore. Fortunately, filing for Chapter 7 bankruptcy will normally put a stay on any ongoing foreclosure proceedings and prevent new ones from being initiated.
- Wage garnishment. Creditors who have obtained judgments against delinquent debtors will sometimes garnish wages until they are repaid. That can add even more financial pressure to a situation that was difficult to manage to begin with. Once again, filing for bankruptcy protection can put a stop to garnishment and similar ongoing losses.
- Collections. What many debtors find most disconcerting about falling behind is the persistence and aggression of debt collectors. The Chapter 7 bankruptcy laws require that such collection efforts cease as soon as a debtor has filed for protection.
The First Step Toward a More Secure Financial Future
Obtaining protection from threats like these can make bankruptcy worth considering. Given that a successful bankruptcy filing under Chapter 7 will also normally do away with many kinds of debts, it should be easy to understand how this option can be useful in certain situations.