One of the major concerns for people facing the possibility of bankruptcy is the cost of actually filing for bankruptcy and paying an attorney for this process. As they are overwhelmed by piling debt and creditors calling, the thought of paying an attorney only contributes to the stress.
When you fully understand the relief that bankruptcy will provide, however, it is easier to understand why it is worth the investment and how it may be more financially doable than you had thought.
Here are a few things to keep in mind while considering bankruptcy:
- The moment you file for bankruptcy, all creditor calls must end and stops are put on all foreclosure and repossession proceedings.
- The attorney will be in charge of communicating with creditors on your behalf after filing, relieving you of that stress.
- In Chapter 7 bankruptcy, all unsecured debt will be wiped out or discharged, freeing you of those debts once and for all.
- In Chapter 13 bankruptcy, your debt will be restructured into a more manageable repayment plan that you can keep up with.
- It is often prudent to stop paying on credit cards when you decide to file Chapter 7 bankruptcy. These debts will be resolved in the bankruptcy process. This frees up additional funds to help cover the cost of bankruptcy.
- You may be able to discuss a payment plan with your attorney to ease the stress of that fee.
In the end, bankruptcy is often the best possible path to relief from the significant stress of large debt. For many individuals and families, it is the only way to truly dig out of deep financial holes.
Working with a skilled attorney, you can achieve the best possible outcome and be set up for a more secure and financially stable future. At Gipson, Norman & Root, we are committed to providing individuals and families the solutions they need to get out from under debt once and for all. For more information, please click here.