Filing for bankruptcy is often the first step to financial stability for people with significant debts. Whether you file for Chapter 7 bankruptcy, which eliminates many kinds of unsecured debt, or Chapter 13 bankruptcy, which restructures debt into a long-term repayment plan, you can get relief from your financial stresses. Below, learn more about the advantages of this option.

How Bankruptcy Can Improve Your Life

1. Get a Handle on Debt

Debt can be stressful to manage. Bankruptcy gives you a viable solution and clear, workable steps that will result in better control of your finances. With Chapter 7, you'll no longer have the burden of unmanageable unsecured debts, and with Chapter 13, you'll know how much you owe each month, with a clear end in sight.

2. Stop Creditor Harassment

Constant phone calls and letters from creditors can sometimes border on harassment, disrupting your daily life and peace of mind. However, as soon as you file for bankruptcy, all creditor actions against you must legally stop. If creditors continue to contact you, you can refer them to your attorney.

3. Improve Money Management Habits

When filing for bankruptcy, you may be required to complete credit counseling and debt management courses. These can be essential tools on your road to financial recovery. They'll help you better identify past spending mistakes and provide trustworthy guidance on how to budget and plan accordingly as you move forward into a debt-free life.

4. Stop Foreclosure

Once a bankruptcy case is filed, the courts issue an automatic stay on all foreclosure action currently in progress against the filer. Though this stay isn't permanent, it'll buy you valuable time to explore available options with your attorney. You can then choose to remain in the home or liquidate it as part of the bankruptcy process.

To start enjoying these benefits and more, contact the legal team at Cecil, Cecil & Barker, P. A. Since 1993, they’ve been helping clients throughout the High Point, NC, area with every step of the legal process. Call (336) 883-8383 to schedule a free consultation today, or visit their website to learn more about their bankruptcy services.