Most people hope that they will have the financial security not to worry about how they will pay their rent or mortgage or generally make ends meet each month. Unfortunately, numerous New Jersey residents and people across the country have money problems that leave them feeling as if they will never achieve that sense of security.
You may be among that group, and due to significant debt, you may worry about your financial affairs on a daily basis. You may have considered taking various actions over the years in efforts to get back on track, but so far, nothing has seemed to help in a substantial way. If so, bankruptcy may be able to help.
How can bankruptcy help?
Many people put off filing for bankruptcy because they think the process only causes more harm than good. Fortunately for you and many others, that is typically not the case. Certainly, there are some downsides to filing for bankruptcy. Your credit score may lower after filing, but you may want to keep in mind that individuals with substantial debt and other financial issues often have low scores already. Rather than worrying about bankruptcy damaging your score, you may want to think of ways you can rebuild it later.
On a more positive note, a successful bankruptcy case can help you get out from under your crushing debt. If you have unsecured debts, like credit card debts, and file for Chapter 7 bankruptcy, you could receive a discharge of those debts. As a result, you would not have to repay the balances and creditors could not attempt to collect on those debts in the future. Of course, not all debts are dischargeable, including tax debt and unpaid child support.
Filing for bankruptcy can also provide some immediate relief with an automatic stay. If you have creditors attempting to contact you multiple times a day or are at risk of having certain property repossessed, the automatic stay can put those actions on hold for a period of time. The exact length of time could depend on the details of your particular case.
If you hope to reach a point where you are not struggling to make ends meet and not having to deal with creditor calls, you may want to give bankruptcy its due consideration. If you have questions and the desire to gain more information on how this option could help you, you may want to speak with a knowledgeable attorney.