We all have a point in our lives when we sit down at our desk or kitchen table and calculate how much debt we are carrying. As we add up the numbers, our chest tightens, and we feel like we can’t breathe.
It’s no secret that many Americans are living paycheck to paycheck. With very little savings, an unexpected significant expense can be catastrophic. Our stress levels surge at that point as our debt finally overwhelms us.
Stopping collection efforts
Feeling like you can never get ahead can leave you mentally exhausted. Mounting bills and endless calls from creditors can be distressing and create feelings of anxiety that disrupt your sleep, strain relationships and diminish your quality of life.
Bankruptcy can provide some relief. It’s not a sign of failure; there is no reason for shame. Instead, bankruptcy is a tool that you can use to regain your financial footing and start over with a clean slate.
First, it can stop the harassment from creditors and collection agencies. When you file for bankruptcy, an automatic stay goes into effect. This protects you from being contacted, having your wages garnished or worrying about lawsuits for unpaid debts.
Bankruptcy can also provide you with a plan for managing your finances. Before you can file, you must go through credit counseling. Additionally, chapter 13 allows you to restructure your debts and make manageable payments, typically over 3- to 5-years.
Knowing that you have a clear path forward and legal protection, your anxiety should start to subside. With breathing space, you should find focusing on a brighter future easier. By lessening the financial stress, you can start sleeping better because you have peace of mind.
Bankruptcy isn’t without its drawbacks. Therefore, you should work with someone who can help you review your options and offer guidance on the best way forward.