A higher percentage of people are now filing for bankruptcy to get back on the road to financial independence. Bankruptcy is a great option for anyone who is no longer able to keep up with their monthly bills.
The Current State of the Economy and COVID
The economy has been in bad shape. Millions of Americans are either out of work or working jobs out of their field to make ends meet. The struggling job market has encouraged many to file for bankruptcy. Declaring bankruptcy can offer a sense of relief during these tough economic times and allow those who file to get back on a steady financial routine.
Creditors Will Stop Contacting You
One major benefit of filing for bankruptcy is that creditors can no longer come after you. This means that they cannot call you, send letters in the mail or continue with pending lawsuits. When you no longer have to deal with the stress of creditors constantly contacting you, it can be easier to get a grip on your debt and start taking steps to pay it down.
Rebuild your Credit Score
Filing for bankruptcy can actually help your credit score go up. This is possible because most of your past due debts will no longer be included on your credit report. Additionally, less outstanding debt will be reported on your credit report. These two factors can significantly improve your credit score over time.
Stop Paying Just The Interest Each Month
When money is tight, it may be harder to pay more than the minimum payment each month or pay more than just the interest on your loans/debts. It is a good idea to opt for bankruptcy if you are not making any headway on your debt. Only making minimum payments each month can leave you at a financial standstill. Bankruptcy will allow you to get back on track financially and gain relief from your debt.
Until the economy fully recovers, it seems that more people will turn to bankruptcy to alleviate their financial burdens. Contact Ralph Ferro Jr., Esquire (201) 446-5904 to discuss the best possible option for your situation.