Deciding to file for bankruptcy is an important and sometimes overwhelming choice to make. One of the best ways to make an educated decision is to find out the answers to commonly asked bankruptcy questions.
Do the phone calls, voicemails, emails, etc. from creditors stop once I declare bankruptcy?
There is nothing quite and stressful and downright miserable as fending off creditors. They are relentless calling, leaving messages, sending emails, etc. By filing bankruptcy, you will be granted an automatic stay order. What an automatic stay order does is that it makes is illegal for a creditor to call you any longer. This is a nice side benefit of filing.
What is a debt discharge in bankruptcy?
After you file for Chapter 7 bankruptcy, a debt discharge enables you to get rid of all your prior debts that you owe. You will not have any outstanding debt liabilities. However, you must first qualify to be able to file for Chapter 7 bankruptcy. In order to find out if you qualify for Chapter 7 and to better educate yourself on your options, it is a good idea to talk with a bankruptcy law firm.
Does filing for bankruptcy ruin my credit?
Bankruptcy is an effective means to take back control of your spiraling debt. Often times, people that are considering filing for bankruptcy have damaged credit to begin with. Many of these people see their credit scores actually improve not too long after filing.
Filing for bankruptcy will impact your credit report. The bankruptcy filing can stay on your credit report for up to 10 years, although sometimes less than this. While it’s listed on your report, it can have a negative impact. Your situation will be unique though. Things such as your credit history, the type of bankruptcy you file for, your overall financial situation, and debts will play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy law firm MA can help you get a fresh start. If you are considering bankruptcy in Massachusetts we can help.