If you’re struggling with mortgage payments, unpaid balances on credit cards, car loans, or medical bills, declaring bankruptcy may be the most affordable and legally sound means for getting back on your financial feet. First, bankruptcy should put an end to calls from creditors or debt collection agencies. After you file for bankruptcy, creditors are required to go through your attorney and leave you alone. Secondly, if you’re worried about foreclosure or the repossession of your car, filing for bankruptcy initiates an automatic stay of relief, requiring creditors and banks to stop all collections and foreclosure actions against you. Third, while filing for bankruptcy will harm your credit, letting delinquent accounts stay on your credit report will only harm your credit more.
At the law office of Mile High Bankruptcy, PC, our bankruptcy attorneys can evaluate your financial situation and discuss the options available to you. Don’t wait until your debt is completely overwhelming — contact Denver, Colorado bankruptcy attorneys at Mile High Bankruptcy today.
Creditors are required by federal law to stop calling you after you have filed for bankruptcy. If a creditor calls after you’ve filed for bankruptcy, give them your case number and filing date and refer them to your lawyers at Mile High Bankruptcy, P.C.
In general, if you can continue paying your monthly mortgage payment, you won’t lose your home filing for bankruptcy. Under the terms of Chapter 7, your unsecured debt – credit cards, medical bills, certain kinds of loans – will be discharged. Afterwards, you should have more disposable monthly income to pay your mortgage. There is also a household exemption you can claim to help protect your home. In a Chapter 13 bankruptcy, you create a repayment plan according to what you can afford. Here, you should make allowance for paying your monthly mortgage even though it’s not part of the debt unsecured debt your repayment plan will restructure. In the end, filing for bankruptcy should help you avoid foreclosure.
While it’s true that bankruptcy will remain on your credit score for up to ten years, you can begin improving your credit score as soon as your bankruptcy is finalized. This may sound counter-intuitive but the reason why is quite simple. Most people who file for bankruptcy have delinquent accounts on their credit report – unpaid credit card bills, loans that have been defaulted on, or outstanding debt. The longer these remain on your credit report the more your credit score suffers. After you file for bankruptcy, accounts and debts that are part of your bankruptcy should be removed.
If you’re struggling with debt and are considering talking to your bank about a loan modification or short sale, contact Denver bankruptcy attorneys at Mile High Bankruptcy today. Depending on your situation, bankruptcy may be the best option available for saving money in the long run and regaining financial stability.
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