How Can Filing Bankruptcy Help Ease the Stress of Debt?

How Can Filing Bankruptcy Help Ease the Stress of Debt?

The thought of filing bankruptcy can be intimidating.  Our bankruptcy attorney has been working with clients to help them resolve debt issues for more than three decades.  We not only know the physical process of filing bankruptcy; we also understand the emotions that can occur as a result.  We sometimes meet with clients who are so overwhelmed, they feel there is no way out.  They often ask us if filing bankruptcy will really ease their stress.  While we cannot wave a magic want to make your stress go away, our bankruptcy lawyer can say with quite certainty that many clients report feeling much less stress after filing bankruptcy.

We are continuing our series of articles discussing some ways filing bankruptcy can ease the stress of being in debt.  Our previous article covered the fact that once your bankruptcy attorney files for you, an “automatic stay” takes effect and creditors will be required to stop contacting you. We also discussed the ways in which different types of bankruptcy can resolve debt issues. Today, we will look at two more ways filing bankruptcy can reduce stress of debt.

Prevents Foreclosure

Filing Chapter 13 bankruptcy can help prevent your home from going into foreclosure.  This is because when your bankruptcy attorney files Chapter 13 on your behalf, you are essentially asking for the ability to re-organize your debt, allowing you to catch up on your mortgage and/or finance your past due payments in accordance with the payment plan that has been established as part of your Chapter 13 bankruptcy.

Retain Assets

Filing bankruptcy can help protect your personal assets that you already own (i.e., jewelry, clothing, furniture, etc.) as well as help you retain some that you don’t.  For instance, if you have a car loan and are behind on payments, you may be able to keep the vehicle under your bankruptcy financial restructuring plan.  

When in need of an experienced lawyer to help them file bankruptcy, Charleston residents and those in surrounding areas trust the Drose Law Firm.  Give us a call to meet with our bankruptcy lawyer today.

Case Study

Nancy P. – Case Study

Nancy P. survived the loss of a career and a bankruptcy. Now she has some words of advice for those going through the same things.

The economy was still crashing in 2010 when Nancy came to the realization that what she thought were sound business decisions turned into a series of massive mistakes and unfortunate timing. She couldn’t hold on to her restaurant and her three rental houses any longer. Her employees were out of work and she couldn’t pay her vendors.

“I felt so terrible about myself because I couldn’t fix it. It was an avalanche and I couldn’t do anything to stop it,” she wrote in an email to TFS. “Everyone knew I had to close my restaurant and what was once a dream turned into a total nightmare.”

It wasn’t until late January of 2015 that Nancy and her husband filed for Chapter 13 bankruptcy.

While at the time her personal bankruptcy felt like it was an “epic failure” and taking a handout she didn’t deserve, in retrospect Nancy said she should have filed sooner. It ended up being the best thing to do for herself, her family and her future.

She signed up with www.tfsbillpay.com for monthly payments in July of 2017. It wasn’t all smooth sailing. Early in the process, Nancy had a couple of failed payments but still persevered and made “catch up” payments. In all, she made 17 transactions totaling more than $10,000 through TFS.

“Money was tight but eventually I found the reward in making those payments,” she said “It was what I could do to get to the other side of this. It was a form of redemption.”

Now free from bankruptcy, Nancy feels like she was given a second chance.

Her credit is good, she is buying a house and she is even considering a new business opportunity – something she never expected to do.

“You will get out of this, too. Don’t beat yourself up,” Nancy said. “You will learn so much through this process and you will come out of it better and stronger.”

And, she has advice for others as they navigate through bankruptcy.

“Managing your mental state is probably one of the most important things you can do to get through bankruptcy,” Nancy wrote.

Here are Nancy’s best tips for going through a bankruptcy:

  1. You are not a failure if you file for bankruptcy. 
  2. Get a good bankruptcy attorney.
  3. Don’t wait too long to file. 
  4. Remember, it will eventually end. 
  5. Whether you are required to pay anything back or not, this is your chance to have a new life. It is a massive gift so just accept it graciously and get on with your life. 
  6. Be kind to yourself as you go through this. You are making the right decision for you and your future. 
  7. The world, your creditors and the government are not “out to get you.” Bankruptcy is your chance for a clean slate. 
  8. If you are a small business owner, get an accountant who can do your books and even better if they are savvy on market trends. Pay attention to the economy. 
  9. Learn about finances during bankruptcy. Buy books, take online courses or watch YouTube.  There are some excellent free resources online to help you manage your money. Your bank, investment firms and community centers also offer classes. Create a new relationship with money. 
  10. Did I mention that bankruptcy is not failure? You are not a failure. 
I’m Overwhelmed with Debt. How Can Filing Bankruptcy Help?

I’m Overwhelmed with Debt.  How Can Filing Bankruptcy Help?

Our bankruptcy lawyer understands the burden people face when they have significant debt.  You feel like you are drowning and cannot see a way out. After spending more than three decades helping clients who are overwhelmed by debt, our bankruptcy attorney has seen it all and is extremely gratified when he can help clients realize that there is a light at the end of the tunnel. Our next series of articles will cover some ways that filing bankruptcy can help you relieve stress and move on to the next stage of your life. Let’s get started:

Stop the Creditors from Calling

Collection agencies can be ruthless in their attempt to recover debt.  Not only are collection agents persistent in calling, but some can be down right intimidating.  The good news is once your bankruptcy lawyer files for you, an “automatic stay” takes affect and creditors will be required to stop contacting you.

Resolve Debt

Probably one of the most attractive features of filing bankruptcy is that it does resolve your existing debt issues.  Chapter 7 discharges most unsecured debt, while Chapter 13 re-organizes your debt and allows you to be placed on a plan toward paying it off completely. Either way, you are afforded a fresh start.

Our next article will outline more ways filing bankruptcy can help ease the feeling of being overwhelmed by your outstanding debt.  If the bills are piling up and the debtors keep calling, it may be time to discuss your options with our bankruptcy lawyer. At the Drose Law Firm, bankruptcy is all we handle, and we take into consideration both the legal and emotional aspects of each case. When filing bankruptcy, Charleston residents and those in surrounding areas know who to call. We invite you to connect with our bankruptcy attorney today!

Help! I’ve Filed Bankruptcy But Creditors Keep Calling

Help! I’ve Filed Bankruptcy But Creditors Keep Calling

Theoretically, when you file bankruptcy, your creditors should stop calling you.  You may still be contacted by creditors until your bankruptcy notice fully processes.  However, there are some debt collectors who may be relentless and still choose to contact you. If this happens, there are a few steps you can take.

Tell Them You Have Filed

The first step you should take if you are contacted by creditors after your bankruptcy attorney files for you is to let them know you have filed and ask them to stop calling you.

Make a Detailed List of Creditors Who Call

As you inform creditors who call you that your bankruptcy lawyer has filed for you, be sure to keep a log of each call.  Write down the name of the creditor, name of the person calling you (if you are able to get it), when they called (date and time), and a brief synopsis of the conversation. This could be useful if action needs to be taken against a persistent debt collector as discussed below.

Let Them Know You Are Prepared to Take Legal Action

Once you have informed your creditors that your bankruptcy attorney has filed on your behalf, they should stop calling you. If they do not, then you are well within your rights to inform them that you are prepared to take legal action if they continue to harass you.  Be sure to consult with your bankruptcy lawyer on your full rights and recommended verbiage to use in your particular situation.

When it comes to bankruptcy, Charleston residents and those in surrounding areas have trusted Drose Law Firm for more than 30 years. If you find yourself in need of an experienced and compassionate bankruptcy attorney, we are here. Give us a call to learn more today!

Medical Debt

This charity plans to buy out $278 million of medical debt

A national charity has announced it will buy out the unpaid health care bills of 82,000 low-income patients.

RIP Medical Debt has reached a deal to buy $278 million in debt from Ballard Health, according to The Wall Street Journal. Many of those patients never should have been billed at all under the hospitals’s financial-aid policies, but seemingly failed to fill out the proper applications. Health care costs have soared recently, and bills are haunting patients.

Read article on Fortune.com

How collectors trick consumers into reviving dead debts

Consumer advocates say there’s an accelerating effort within the $11 billion debt collection industry to make profits from debts the financial industry once wrote off.

Read in The Washington Post: 

Reverse Mortgage Loans

Reverse Mortgage Loans

A number of our clients have used reverse mortgages responsibly – like anything, there are lenders in the industry trying to take advantage of people, but if you find someone you trust, and have proper representation, a reverse mortgage can be a good fit.

6 Strategies to Extend Savings Without Working Longer

6 Strategies to Extend Savings Without Working Longer

Karen Arndt, 60, has tinkered with several retirement calculators, and they all generate the same finger-wagging advice: Keep working, they seem to warn. You’re not even close.

Student Loan Flow Charts

Student Loan Flow Charts

Use these charts to help you understand student loan options and processes. Read more

Student Loan Primer

Student Loan Primer

This primer is intended to provide you with an introduction to the subject matter, and does not provide legal advice. The document contains hypertext links to websites created and maintained by other organizations. These links are provided for your convenience, and are not intended to endorse any views expressed on the outside sites, or endorse any particular products, services or organizations. We do not control or guarantee the accuracy, relevance, timeliness, or completeness of the information provided. Student loan programs do change periodically, so be sure to check with the original source for more current information.