There has been a flood of bankruptcies in recent years as the economy struggled. Since 1996, almost every year has seen well over one million personal bankruptcy filings. That translates to an incredible amount of individual grief, stress and loss. There are no indications that the numbers of those seeking bankruptcy protection will be significantly reduced any time soon.
There are a number of ways that filing for bankruptcy can help individual consumers.
1. Credit card debt and medical bills are two of the primary reasons that people get heavily into debt. Bankruptcy allows this type of unsecured debt to be either eliminated entirely or greatly reduced. Once people get behind on their credit cards, late payment fees and other charges make it impossible for many to ever catch up. At times, the late fees may be greater than the minimum monthly payments. Eliminating this form of debt is a great relief.
2. Constant, harassing calls from creditors raise stress levels to unbelievable levels. Filing for bankruptcy ends those phone calls and letters.
3. Foreclosure proceedings are also halted. In some cases, Chapter 13 bankruptcy will allow a homeowner to retain their home. An experienced bankruptcy attorney will be able to discuss the individual circumstances and help the homeowner to determine if this would be the best choice for them.
4. Many people worry that their credit scores will be ruined forever if they declare bankruptcy. That is not true. Although
5. Filing Bankruptcy Colorado Springs
6. will remain on the credit report for seven to ten years, it’s possible to reestablish credit after a bankruptcy. Paying monthly bills on time will gradually improve the credit score. Finding and using a starter credit card will also be a benefit, even if the monthly interest rate is high. Paying off the bill in full every month will be important.
Anyone considering Filing Bankruptcy Colorado Springs should collect all of their financial information and discuss their situation with an experienced bankruptcy attorney. For 25 years, David M. Koppa has been counseling clients about their rights and the legal system. His practice focuses on bankruptcy, divorce and family law, criminal charges and patent law. Contact David M. Koppa for a free consultation.
