Fall is in full swing. The night air is a bit crisper. The holidays are around the corner. Sadly, many Americans approach the holiday season with overwhelming debt. It may be from excessive credit card balances, countless medical bills, and perhaps even one or two delinquent mortgages. It is hard to imagine this situation will improve over the holidays. Bankruptcy may be the right solution for anyone faced with these unfortunate financial circumstances.
The filing of a bankruptcy petition can provide instantaneous, immediate help. The very moment a debtor files a bankruptcy petition, the automatic stay goes into effect, and creditors must stop any efforts to collect a debt, (although there are limited exceptions). The automatic stay’s protection remains in effect while a case is open and active.
A debtor in an average Chapter 7 case will typically receive his or her discharge order in four months. Once the court issues a discharge order, these creditors will be gone forever.
Therefore, the exact second a bankruptcy petition is filed, most creditors are gone for good. This point in time may be measured by the assignment of a case number to the filing of the petition.
It’s the time of the year when Americans spend beyond what they would normally any other time of the year. Ideally, it would be reassuring to have a surplus of cash available at the start of the holiday gift-buying season. But this luxury generally applies to a minority of people. Most individuals may be in the middle of the financial spectrum – not (necessarily) struggling with bills and still able to use credit for increased spending during the holidays.
Bankruptcy provides a fresh start. No bills. No creditors. No phone calls. No letters. No stress.
Bankruptcy provides freedom to continue with life in the present while building something for the future – without the burden of having to dig out of a seemingly bottomless hole.
The downside is that former bankruptcy debtors are typically in no position to spend money after a bankruptcy case. Any spending has to be in cash since credit is usually minimal or even nonexistent. But after a financial downturn that may have been caused by errant spending, who would want to spend beyond the necessities?
The good news is that life after bankruptcy returns to normal fairly soon for those who save and spend their money wisely. Theron Morrison provides assistance to all of his clients post-bankruptcy so they may strive to achieve good saving and spending habits.
For anyone who wants to solve their significant financial problems immediately, and starting 2020 with a fresh, new start, talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.