Losing a job can easily cause someone a dramatic rise in their credit card debt, especially if they have been refused unemployment insurance. While using a credit card is not recommended for paying day-to-day expenses, sometimes it is necessary to keep food on the table or the electricity on in the home. If overspending or using credit cards to pay for necessities causes overwhelming debt, then filing for bankruptcy may be the only way to address debt issues and reorganize finances to help get outstanding debts paid. While filing a bankruptcy can be a blemish on credit ratings, it is far better than defaulting on loans, credit cards or other forms of debt.
Filing for bankruptcy should be a last resort, but it can help get a financial mess reorganized into something more manageable for those who are in extreme debt. Although debts will not be dismissed with a bankruptcy, as some people think, it will allow all debts to be consolidated in order to help make paying them easier to do. After all, it is easier to write one check than it is to write 10 checks to get debts paid. Before resorting to filing a bankruptcy on their own, an experienced bankruptcy attorney in Grand Rapids MI should be consulted.
Another advantage to filing bankruptcy is getting creditors to stop their harassment of those indebted to them. Most creditors will try continuously calling people to get them to pay their debt. They may resort to tactics like exaggerating what they can do to collect debts, they will call at all times of day or night and they may try contacting people at work to collect debt. Filing a bankruptcy will force creditors to stop calling, trying to garnish a debtor’s wages or taking them to court to try to get their money back. A bankruptcy may stay on a credit report for up to 10 years, it can help people take back control of their money and get their financial house in order. Consulting with a Bankruptcy Attorney in Grand Rapids MI should be the first step when considering a bankruptcy.
