It is possible that you did not suddenly wake up one day to find yourself facing insurmountable debt. You may have noticed for some time that your credit card bills were getting higher, as you were only able to make minimum payments, and your other loan balances continued to grow due to interest and fees. Of course, it is also possible that a sudden event did contribute to your debt issues, such as a medical emergency or unexpected job loss.
You may have tried to put off having to take any major action to handle your debt for as long as you could, but you may now feel ready to take that action. Still, you probably have some reservations about taking a step like filing for bankruptcy, because it can have such a significant impact on your life. However, it could be for the better.
Is bankruptcy worth it?
Whether bankruptcy is worth the time and effort could depend on individual perspective. However, filing for Chapter 7 bankruptcy could allow you to have your unsecured debts discharged, which means that you no longer have an obligation to repay those balances. So, if you have a substantial amount of credit card debt that you see no hope of repaying, you could see that debt forgiven through a successful bankruptcy case.
Additionally, if you are facing actions from creditors, such as constant phone calls, threats of repossession or even foreclosure proceedings, bankruptcy may be able to help with those issues as well. After filing for bankruptcy, an automatic stay goes into effect that requires creditors to stop taking such actions against you. Keep in mind, however, that an automatic stay is not permanent.
What about the negative aspects?
Certainly, bankruptcy is not a completely positive experience, as it can lower your credit score, but it is likely that your credit score is already on the lower end of the spectrum if you have missed payments and accrued a considerable amount of unpaid debt. Plus, you can always make an effort to rebuild your credit after you complete your bankruptcy case.
Having concerns about whether bankruptcy could suit your circumstances is understandable. Fortunately, you do not have to sift through all of the information about this option on your own. Discussing this debt relief method with an experienced New York attorney could allow you to gain a clearer picture of your available options.