Are you dealing with non-stop calls from creditors and debt collectors? Are you falling behind on bills more and more each month? If so, it is normal to feel stressed out and frustrated by your financial circumstances. You probably just want to disconnect and get everything out of your mind.
While this is understandable, doing nothing is one of the biggest mistakes you can make. It is far more costly than filing for bankruptcy protection. Here, our Martinsburg bankruptcy attorney explains why doing nothing to change the direction of your finances carries such a high cost.
Debt Relief: Three Reasons Why Doing Nothing is So Costly
1. Debt Will Continue to Build and Become Unmanageable
Does your debt feel unmanageable now? Imagine how much worse it is going to feel in six months or a year if you do not take action. The fees, interest rates, and penalties will keep adding up making the situation all the more challenging.
2. The Stress of Dealing With Debt Collectors is Immense
Dealing with a never-ending stream of calls from aggressive debt collectors is stressful. It takes a real mental and emotional toll on a person. You do not have to keep dealing with it on your own. When you file for bankruptcy protection, you are entitled to an automatic stay under 11 U.S. Code § 362. Creditors must halt debt collection activities.
3. Your Credit Score Will Deteriorate Further
If you do nothing, your credit score will continue to deteriorate. You may have heard that filing for bankruptcy is also bad for your credit rating. That is somewhat misleading. While it is true that filing for bankruptcy would damage the credit score of someone with a good credit rating, doing so can actually help a person with a poor credit rating. As noted in a report from the Federal Reserve Bank of New York, filing for bankruptcy tends to help an insolvent person’s credit score in the long run.
Bankruptcy is a Tool to Help You Change the Direction of Your Finances
It is your legal right to file for bankruptcy protection. Ultimately, bankruptcy is a tool to help good, hard-working people get the fresh financial start that they need and deserve. With debt, the general rule is relatively straightforward: The sooner you take action to address the problem, the easier it will be to find a solution.
If you are a good candidate to file for bankruptcy protection, it is better to file sooner rather than later. Likewise, if you are a good candidate for an alternative, non-bankruptcy debt relief solution, you need to get started right away to put yourself in the best position to get back to financial stability. Our law firm will work with you to help you find the right path forward.