The Liberating Power of Filing Bankruptcy For The New Year

A Chapter 7 bankruptcy filing works to help individuals with mountains of credit card and other unsecured debts wipe their financial slate clean so to speak, by discharging the debts through the bankruptcy. The beauty of filing bankruptcy is that an individual can experience this immediate and absolute financial freedom from their seemingly insurmountable debts. This shows the true power of filing Chapter 7 bankruptcy. Plus, when a debtor files bankruptcy, the automatic stay takes effect immediately upon filing. The automatic stay is a court order prohibiting any contact with the debtor from the creditors. This puts a stop to any actions to collect on a debt, including harassing phone calls, foreclosure, repossessions, wage garnishments, judgments, and utility shut offs.

When an individual is caught in the middle of overwhelming debt struggles, it can sometimes feel like they are all alone. However, recent statistics have shown that the annual personal bankruptcy filings have continued to climb over the 1.5 million mark. Factors that contribute to these increasing numbers of bankruptcy filings include job loss, credit over extension, divorce, illness, and unforeseen financial disasters. People struggling with burdensome debt should not worry, but should consider the protection that a bankruptcy filing can give them. Bankruptcy is a person’s Constitutional legal right and is even mentioned in the Bible. It no longer carries the stigma of failure as it once did. Filing bankruptcy gives an individual a second chance at getting their finances under control and gives them their life back. When it is all said and done, an individual can emerge from a bankruptcy filing stress free and maybe even debt free. 

Since the changes to the bankruptcy code back in 2005, filing bankruptcy has become a little more complicated, so it is always recommended to speak with an experienced bankruptcy attorney. A local bankruptcy attorney can determine if a person qualifies to file bankruptcy, if it is right for them, and can use the bankruptcy laws to the fullest extent to protect the debtor’s personal property.