5 Ways a Greensboro Bankruptcy Can Help You Get Your Life Back on Track

Bankruptcy can help you get your life back on track

Image Source: Flickr User greg westfall

Many consumers in Greensboro, NC are struggling with their debts. If this is your circumstance, and you're behind on your bills, living paycheck to paycheck, and are dealing with debt collector threats, there is help out there for you. Chapter 7 and Chapter 13 bankruptcy are both viable solutions to get meaningful debt relief and solve your money problems. Here are five ways that bankruptcy can help you get your life back on track.

#1 Immediate stop to debt collections calls

Dealing with aggressive debt collectors is one of the most difficult things about being behind on your bills. If you're getting calls at work, it can make you look bad to your employer, can distract your from your job and make you fear the ringing of the phone. And at home, it's just as bad. You may be afraid to answer the phone, cringe every time it rings and be on pins and needles all the time. But the second you file bankruptcy, it's illegal for debt collectors to contact you.

#2 Discharge of much of your unsecured debt

Unsecured debt is that which is not tied to an asset such as a car loan or a mortgage. This includes credit cards, medical bills and income taxes. Chapter 7 offers full discharge of medical and credit card debts and may also wipe out certain qualified state and federal income taxes that have been outstanding two years or more. Chapter 13 will usually involve payment of modest amounts on these debts, then discharge of remaining balances. This can free you up to get and stay current on your bills.

#3 Chance to rebuild your credit rating

The longer you let yourself wallow in debt you can't afford to pay, the more your debt score will continue to decline. It is true that when you first file Chapter 7 bankruptcy, your credit score will take an initial hit. But then it will be rebound – on average, about 100 points within the first year after you file and even higher if you make a concerted effort. With a Chapter 13, the credit score rebound will be a bit slower, but is still better than continuing to let your credit slide.

#4 Save your home and car

If you are behind on your car loan, you may be facing threats of repossession – and you need your car for work. If you are behind on your mortgage, you may have received a letter of intent to foreclose – and you need someplace to live. Chapter 7 bankruptcy can put a stop to both of these actions, unload unsecured debt and free up cash to catch up on your secured debt. Chapter 13 bankruptcy offers you the chance to catch up on past due balances over time.

#5 Emotional peace of mind

Living with debt you can't afford to pay is stressful. Roughly 30% of those with high debt experience severe anxiety according to a study from the Nottingham School of Economics. Other research by the Royal College of Psychologists showed that 50% of those in deep debt also suffer some sort of mental health issue like depression. Getting your debts relieved in bankruptcy can have a profoundly positive effect on your state of mind and your life.

There's no reason to keep on living with debt you can't afford and allowing it to take over your life. Get the debt relief you need and the financial peace of mind you deserve. Contact the Law Offices of John T. Orcutt for a free North Carolina bankruptcy consultation at one of our locations in Greensboro, Fayetteville, Raleigh, Wilson, Garner or Durham. Call +1-833-627-0115 today.

Sources:

Nottingham stress and debt study

Royal College stress research