Debt-Related Stress: Can Filing For Bankruptcy Reduce It?
If you’re struggling with debt, you’ve probably spent several sleepless nights tossing and turning, wondering how you will ever get out of this situation. You may have lenders threatening to repossess your car or home. You may even be worried about your utilities being shut off or not having food to put on the table. This is no way to live, and you deserve relief from the burden that debt causes. For some people in these circumstances, bankruptcy is available as an option.
Bankruptcy itself doesn’t come without its own stress. Preparing and filing a bankruptcy is no easy task. Mishaps in your case could cause delays, fees, and all the negative feelings that come with that. You may also feel embarrassed or like a failure for needing to declare bankruptcy. Most importantly, you should try to take it easy on yourself. One way to do that is by hiring an experienced Chandler bankruptcy attorney. For your free consultation with a member of our dedicated Chandler bankruptcy team, call 480-780-2211. Additionally, our Gilbert and Chandler BK Lawyers have telephone appointments and payment plans available.
Ways That Debt Can Cause You Stress
Debt can cause issues in every aspect of your life. If you’re behind on rent payments, you may be evicted, and if you’re behind on mortgage payments, your home may be repossessed. Vehicle lenders often act swiftly to repossess when the debtor is in arrears on payments. And it can be hard to find or maintain employment without a residence or car. You probably receive several calls per day from debt collectors, and no longer answer your phone to unknown numbers. You may have been served with a summons for a lawsuit from one of your creditors, or they may even already have a garnishment on your wages in place. With all the extra expenses that come with being in debt, it probably feels like nothing short of winning the lottery can help you.
Side Effects From Stress
Stress takes a large toll on the body. Stress can even manifest in physical symptoms that only make it harder to address your debt situation.
Some of the side effects that stress can cause include:
- Difficulty sleeping
- Anxiety and depression
- Skin issues, such as hives or acne
- Increased blood pressure
- Loss of appetite, or overeating
- Headaches and migraines
- Stomach problems such as ulcers
- Diminished libido
- Drinking and abusing other substances as a form of self-medication
- Chest pain and heart palpitations
- Jaw clenching and grinding
How Bankruptcy Can Reduce Debt-Related Stress
The moment your bankruptcy petition is filed with the court, a protection known as the automatic stay goes into place. The automatic stay prevents your creditors from taking various types of actions against you. Your home may not be foreclosed, and your vehicle may not be repossessed without special permission from the court while the automatic stay is in place. It will also halt any judgments your creditors have against you, stopping them from garnishing your wages or levying your bank account. It will also stop evictions that are in certain phases. This gives you the peace of mind that your household is protected while you wait for your case’s conclusion.
Another benefit of filing bankruptcy is that once you retain an attorney, your creditors must stop contacting you. Instead of calling you, your bill collectors must now call your attorney if they have any questions regarding your balance. Creditors that continue to contact you after being notified of your bankruptcy attorney can be sanctioned by the court.
Negative Feelings From Bankruptcy Itself
Most people don’t find filing bankruptcy a reason to be proud. It can be embarrassing to let friends, family, and creditors know that you are declaring bankruptcy. And while it can sometimes feel like it, you should do your best to avoid viewing yourself as a failure due to your bankruptcy filing. Many people feel stressed about even contacting a bankruptcy attorney in the first place, as it can be overwhelming to decide who to hire. And once you have made the decision to file, hiring an attorney is just the beginning of the debt discharge process. Thankfully, once you do retain a Chandler bankruptcy attorney, creditor collection calls will stop.
Even when you hire a lawyer to do your bankruptcy, there will be several steps that only you personally can complete. You will need to locate numerous types of documents for your bankruptcy petition, and some of them can require extra work to complete, like tax returns. You might have to go back and forth with an office to obtain certain types of documents. Your attorney will most likely have a packet you will need to fill out, so they know which issues are relevant in your case. You will also need to inventory your possessions so that your attorney can make sure they are protected by state exemptions. Whether you file Chapter 7 or Chapter 13, you will need to also complete an online credit counseling course before filing your petition. You will need to complete a second course within 60 days of your 341 Meeting of Creditors.
As mentioned above, everyone who files consumer bankruptcy in Arizona must attend a hearing called a 341 Meeting of Creditors. Here, your trustee, and possibly your creditors, will verify your identity and ask questions about your bankruptcy petition. Make sure you bring your driver’s license and social security card, or your case could be delayed or dismissed. Your bankruptcy attorney should prepare you for this hearing and be in attendance with you.
How Bankruptcy Can Actually Drop Your Stress Levels
Bankruptcy can reduce your stress in countless ways. It is against the law for creditors to harass you during your bankruptcy, or even before it, if they have been informed of your bankruptcy attorney retainer. Once you file, the Automatic Stay protects you from wage garnishments, bank levies, and more.
If you file Chapter 7 bankruptcy, you will be free from credit card debt, medical bills, repossession deficiencies, and other unsecured debts at the conclusion of your case. You will probably receive new credit line offers and your credit score will start to improve sooner than you’d think. Additionally, if you are facing an emergent situation, our Chandler Bankruptcy Lawyers can file an emergency bankruptcy filing for you to quickly get things back in order.
Shift Your Perspective On Bankruptcy
If bankruptcy was such a shameful thing, it wouldn’t be so widely available in our society. Life seems to be getting more and more expensive, and most people are understanding when debt gets out of control. Sometimes, filing chapter 7 or chapter 13 bankruptcy is the best way to get your financial life back on track.
Try keeping the following things in mind whenever you’re feeling down about your bankruptcy situation:
- Many successful people have filed bankruptcy, including former U.S. Presidents Abraham Lincoln and Donald Trump. Want to read more on Famous People that have filed for Bankruptcy.
- Bankruptcy will give you a fresh start, and a chance to improve your credit history.
- Bankruptcy is the chance to get rid of an underwater vehicle or one with many mechanical issues.
- You can learn money management skills in your credit counseling courses and implement them moving forward.
- Bankruptcy resolves things for your creditors as well, so they don’t continue to waste resources trying to collect a bill that will never be paid.
- You don’t have to discuss your financial situation with everyone. The people who love and support you will be there for you during your bankruptcy.
- Have compassion for yourself. Debt can happen to anyone, and that’s exactly why bankruptcy exists.
Contact Our Chandler Bankruptcy Lawyers To File With Confidence
If you’re already dealing with stress due to debt and considering bankruptcy, you don’t need bankruptcy law research, drafting, and the risks of mistakes on your plate as well. A Chandler or Phoenix bankruptcy attorney will streamline each step of the process, reducing your efforts to only what is absolutely necessary for you to complete yourself. A Chandler bankruptcy attorney can also help you make sure all your debts are included, all of your filings are timely, and more. To see for yourself, call 480-780-2211 or use our online form to schedule your free debt evaluation with one of our Arizona bankruptcy lawyers. Also, phone appointments and post-filing payment plans are available. File Bankruptcy by Phone in Arizona.
If you have additional questions regarding filing bankruptcy in Arizona, please click for more information. Arizona Bankruptcy Lawyer FAQ’s.