You have probably spent a lot of time worrying about your financial situation once you started falling behind on your bills. Internal stress due to those unmet obligations will be a problem on its own, but external stress will soon intensify things.
After you miss a payment, you can count on your creditors to start sending you aggressively worded letters. They may also start calling you, both at your personal number and even at work.
You may reach a point where every time your phone rings or the mailman comes, you worry about what will happen next. Every knock on your door could be a potential process server, there to tell you that a creditor wants to drag you into court. Filing for bankruptcy will improve your situation immediately. As soon as you file, your stress levels will probably start to go down.
Your automatic stay takes effect at the time of your filing
Bankruptcy is a somewhat lengthy process. Even those who file Chapter 7 bankruptcy will have to wait for the discharge of their unsecured debts. However, your protection from aggressive collection activities starts immediately.
You receive an automatic stay as soon as you file your initial paperwork with the courts. Your stay protects you from any collection activity. Your credit card company or medical creditors can’t call you anymore. Once you notify them of your filing, they should stop trying to contact you until the court can resolve your case.
Your automatic stay can also prevent a pending lawsuit from going to court. Filing shortly after getting served with a lawsuit could help protect you from a potential garnishment of your wages. After you follow all of the necessary steps for your bankruptcy, your discharge will absolve you of the obligation to repay those debts.
Bankruptcy can help you regain control over your money and your life
It only takes a car crash or a medical emergency to push you into an impossible financial situation. Whether you have medical debt or credit card debt, personal bankruptcy could reduce your stress by ending collection activity and giving you a real plan to improve your financial situation.
Filing for personal bankruptcy could provide long-term benefits and immediate protection as well.