If your mounting credit card debt has you thinking about bankruptcy, you are not alone. Although credit cards can be a great financial tool if you use them correctly, they can also weigh you down if you rack up more debt than you can reasonably manage. If you need a clean financial slate because of excessive credit card debt, turn to Frances H. Hollinger in Foley, AL. Below, this seasoned debt relief attorney shares just a few benefits of filing for bankruptcy.

3 Benefits of Filing for Bankruptcy

1. Put a Stop to the Harassment

If you are behind on your payments, your creditors are probably harassing you with calls, emails, and letters. This can be incredibly stressful, but luckily, bankruptcy will put a stop to it. As soon as you file, you will enter an automatic stay period, which means creditors cannot contact you regarding your debts. If they do, the bankruptcy court will penalize them.

2. Repair Your Credit Score

If you keep missing payments and racking up more debt, your credit rating is only going to get worse. By filing for bankruptcy, though, you will put an end to the missed payments, and you will be able to regain your financial footing. Although bankruptcy will affect your credit initially, most people who file are able to secure new lines of credit within a few months with reasonable income. 

3. Give You a Fresh Start

Bankruptcy cannot discharge all kinds of debt, but it can certainly eliminate or reorganize your credit card debt. Depending on your financial situation, you may qualify for chapter 7 bankruptcy, which will essentially discharge your consumer debt. If you prefer to reorganize your debt so your payment schedule is more manageable, chapter 13 bankruptcy will allow you to do just that. It is not always necessary in a chapter 13 bankruptcy to pay all of your unsecured debt, but they will be discharged in full except some taxes and student loans.

Although there are several advantages of filing for bankruptcy, you may be able to pay off your credit cards without doing so. To discuss your financial situation and determine the best way to proceed, turn to Frances H. Hollinger in Foley, AL. Visit their website to learn more about their experienced team, and call (251) 943-9030 to talk to an attorney about debt relief today.