Very few people rack up debt with the idea of filing for bankruptcy later. Many people think of filing as a last resort and will spend years trying to improve their credit and manage their debt before they finally give up. One type of bankruptcy forces your creditors and lenders to take less money in exchange for what you owe and will let you make convenient payments on your debt. The other is a type of total wipe out that will eliminate most of the debt that you carry. Before looking at the types of bankruptcy filings, you’ll want to find out if it is the best option for you.
Threatening or Harassing Phone Calls
It wasn’t that long ago that creditors could use bill collectors that used threatening and harassing phone calls in an attempt to make you pay. Though federal law now prohibits these phone calls, some bill collectors ignore the law because they think that people will never complain. They might call you first thing in the morning and wake up every member of your family, at the same time that you sit down to eat dinner and even as you get ready for bed at night.
Calls to Loved Ones
Federal law also prohibits bill collectors from calling your loved ones or anyone else who is not you. That doesn’t stop them though. If they have an address on file from where you once lived, they will call the phone at that address and ask about you. Some will go even further and tell the person who answers the reason for the call. Working with a St Louis bankruptcy lawyer can get you freedom from the calls made to your home and those made to your loved ones.
Higher Level of Debt
Before filing for bankruptcy, you should sit down and make a list of all the debt that you carry. Determine how long it would take you to pay off that debt based on your current income level. If you find that you cannot pay off your credit cards with 10 or 20 years or even longer, it may be time to file. Bankruptcy court cannot discharge certain types of debt, including student loans or any back child support that you owe. A bankruptcy lawyer can help you understand the impact that filing really has on your future.