3 Commonly Asked Questions About Massachusetts Bankruptcy
The decision to file for bankruptcy should not be taken lightly. I\’ve addressed a few of the more common questions that come up when people are considering bankruptcy.
Do the phone calls, voicemails, emails, etc. from creditors stop once I declare bankruptcy?
Getting harassed by creditors can be a miserable experience. You know the routine, phone calls, messages, emails, it never ends. One of the benefits of declaring bankruptcy is an automatic stay. Automatic stay makes it illegal for creditors to harass you anymore. They can no longer collect on the debt you owe.
What does debt discharge mean?
When you are eligible for Chapter 7 bankruptcy and decide to move forward with your filing, a debt discharge will wipe away all previous debt. What a Chapter 7 debt discharge does is take away any outstanding debt liability. In other words, you don\’t have to pay those debts off. Not everyone qualifies for Chapter 7 bankruptcy. Speaking with a bankruptcy attorney is the best way to find out what the right solution for you is.
After I file for bankruptcy, will my credit be ruined?
Bankruptcy is an effective means to take back control of your spiraling debt. Often times, people that are considering filing for bankruptcy have damaged credit to begin with. Many of these people see their credit scores actually improve not too long after filing.
It\’s important to note that filing will affect your credit. In most cases, filing will stay on your credit report for at least ten years. Although, sometimes this time period is less. While on your report, the bankruptcy filing can negatively impact your credit. However, bankruptcy is a way to take back control, start anew, and begin rebuilding your credit. It is important to keep in mind that your situation is unique as is your credit history. The type of bankruptcy you file as well as where your credit currently is at all play a role.
Individuals may choose to file bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Contacting a bankruptcy lawyer MA can help you resolve your financial issues. If you are considering bankruptcy in Massachusetts we can help.
