If you are struggling to make ends meet, you are not alone. The Administrative Office of the United States Courts reports that there were over 11,000 filings for bankruptcy in Mississippi over a twelve month period ending September 30, 2016.
If considering bankruptcy, it may help to know some of the benefits of the process. Three examples include:
- No more phone calls, letters or contact. If your petition for relief through bankruptcy is approved, contact from debt collection agencies ends. Any attempt to make contact with you is illegal and can result in legal action against the agency that is making the attempts.
- Debt can be discharged. Depending on the type of relief sought, bankruptcy can also result in the discharge of debt. This essentially means the debt is forgiven and you are no longer responsible for the payments.
- Credit scores can go up. It may seem to go against what you know about bankruptcy, but the process can actually help raise your credit score. Failing to make required payments can hurt your score. Although going through bankruptcy will likely have an initial negative impact, it allows you start over. You can take proactive steps after bankruptcy to rebuild your score and, ultimately, be better off than you were before you filed for relief.
These are just a few of the benefits that can come with an approved bankruptcy petition.
Navigating through the process and weighing the pros and cons can be an intimidating process. As a result, it is wise for those who are considering bankruptcy for debt relief to contact an experienced attorney. Your attorney will review your situation, provide advice to help you get your financial footing and advocate for your legal rights to help you get there.