One tactic that some people in Philadelphia use to deal with their debts is to ignore them. You might find it hard to pay bills that you can no longer afford due to unexpected medical expenses or job loss. Your financial struggle may have you revaluating essential and nonessential expenses and exhausting various options to keep your home and cars.
Ignoring debts does not make them go away. Your creditors are not going to stop making attempts to collect. Some creditors may use illegal collection tactics, such as contacting you outside of certain hours, harassing your family members and giving them information about your situation and making threats and scare tactics to get you to pay up.
You have rights. Though you have fallen on tough times and behind on your financial obligations, there is hope. You might feel embarrassed to even consider the possibility of bankruptcy, but it can help you overcome what seem to be insurmountable odds.
1. Improves financial management skills
People who plan to file bankruptcy must complete a financial education course. Sometimes it is not just the loss of income and a drastic increase in debt that leads to financial distress. Your money management skills play a role too. If you are in the habit of spending more than you make, relying on credit cards and living a lifestyle that your income cannot reasonably sustain, you can benefit from taking the debtor education course.
2. Reduces stress
Stress can interfere with your ability to function, remain healthy and make practical decisions. Once you file for bankruptcy, you no longer have to worry about creditors calling and threatening you and your loved ones. Bankruptcy offers filers protection in the form of a stay that prevents creditors from contacting them. The stay remains in effect until debts are discharged, or bankruptcy is complete. Keep in mind there are conditions that can affect the effective and expiration dates.
Before you dismiss bankruptcy as a solution to your problems, speak to an attorney. Do not ignore your debts or you risk having your wages and bank accounts garnished, which can lead to extreme financial hardship and complications.