Financial difficulties can be extremely stressful, and the thought of filing for bankruptcy may seem just as overwhelming. Unfortunately, this causes many to put off filing, meaning that things may only get worse.
If you need more reasons to stop thinking about filing for bankruptcy and taking the first step, here are three of them to consider.
To stop creditor harassment
Once you file bankruptcy documents, an automatic stay takes effect, preventing creditors from legally contacting you. This puts a swift end to creditor communications, including harassing collection calls and letters. It also stops them from taking legal action, leading to an overwhelming but welcome sense of relief and peace of mind.
To protect your assets
Bankruptcy can also protect essential assets from being seized by creditors. For example, Chapter 7 bankruptcy exemptions in New Jersey, such as the homestead exemption, may allow you to keep your home and personal belongings. Utilizing these exemptions wisely helps to safeguard your assets while addressing your debts in a legal and organized manner.
To improve your credit score – eventually
While bankruptcy may not have a strong initial impact on your score, it can be the first step toward rebuilding your credit in the long term. Eliminating (Chapter 7) or reorganizing (Chapter 13) your debts now can create a sturdy foundation for improving your credit after the bankruptcy. Over time, with responsible financial management, you can achieve a better credit score and improved financial stability.
Waiting to address debt almost always worsens a troubled financial situation. Get started on your future by speaking to someone familiar with New Jersey bankruptcies.
