Bankruptcy, One of Life’s Hard Lessons

Going through the bankruptcy process can teach a debtor some hard life lessons. Many debtors, who have experienced bankruptcy and taken the responsibility of going through the process of recovery, learn a lot about themselves and their finances. 

One of the hardest lessons is how relentless creditors can be to collect their debts. Creditors have several options to make your life miserable. Some of their actions may border on harassment. They can contact you multiple times, take you to court and sue you, repossess or foreclose on secured debts, and if they get a judgment from a lawsuit against you, they can garnish your wages or attach liens against your assets. Most of the time, the only way you can stop them is by filing for bankruptcy. 

The moment you file a bankruptcy, a judge will order all collecting actions to cease. This is called an automatic stay. The automatic stay stops lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment. Creditors will have to continue their debt collection efforts by dealing with the U.S. Bankruptcy Court trustee instead of the debtor. 

Filing for bankruptcy protection is a legal proceeding that is designed to protect both creditor and debtor and to allow the honest person or business to work their way out of a bad financial situation, or in some cases, start fresh. 

Bankruptcy can be a positive learning experience if, when you are given a fresh start, you do not make the same mistakes again. Some who have experienced bill collectors hounding them for money, vow after surviving bankruptcy, to purchase goods and services with cash only. Living on a cash basis is not easy, but it is certainly an honorable attempt to not repeat the same mistakes twice. 

Living within “your means” is different for each individual. Most of us should stay away from credit cards or any high interest bearing credit accounts, like revolving store accounts. In these latter cases, it may be wise to learn from experience and go the cash route if you think you need the items you are purchasing. 

Bankruptcy can teach us some important life lessons. Choosing the appropriate bankruptcy can be complicated, and it is important to talk to a bankruptcy lawyer. 

If need relief from the stress of debt and you live in or around the metropolitan area of St. Louis, Missouri and Illinois, contact us at .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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