Spring and the Bankruptcy Fresh Start

Spring is a time for new beginnings and fresh starts. It's not a coincidence that many people undertake "spring cleaning" this time of year. After months closed windows, congestion, and clutter, the first appearances of Robins and warm breezes have everyone clamoring to clear things out, get some fresh air in the house, and get ready for summer.

The desire to do the same with personal finances is no different. Bills and expenses pile up just the same as household clutter. And spring is as good a time to clear up your finances as any other. With summer on the way, now is the time to consider some of the financial clutter that can we wiped away...

  • Credit cards: Credit card debt piles up faster than any other type of debt, due mostly to the fact that the interest rates are astronomical. If you are making minimum payments, it is likely you are not reducing the balance of your debts at all. This not only clutters up your credit report, it permanently weighs down your credit score. High outstanding balances and debt ratios will keep your credit score stalled in the 400s and 500s. Bankruptcy is a way to clear these out and reset your debt-ratio balance. Your credit score will go up quickly. If your earnings are higher, Chapter 13 bankruptcy is an option for repaying your credit cards without the interest.
  • Old car repo's: Car repossessions and returned vehicles will show up on your credit report and damage your credit history. They can also lead to lawsuits and judgments when the balance owed after auction is a large amount. If you are looking to get a new vehicle this summer, you'll want to account for your old vehicle this spring. These balances and lawsuits are considered "unsecured" and can be wiped out.
  • Deficiencies on your mortgage. Have you been falling behind on your mortgage due to temporary unemployment or disability? You can catch up in  a Chapter 13 bankruptcy. The terms are flexible, and a plan can almost always be made to accommodate your debt. The mortgage arrears can be paid without interest, and filing immediately stops any foreclosure actions. Get back on track before it is too late.
  • Medical bills: Old medical bills from a serious illness or period without insurance coverage weighing you down? Bankruptcy is a great way to discharge your obligation. One major illness without insurance can lead to six-digit medical bill totals. This would be impossible for most people to ever pay off. Bankruptcy can help.
  • Utilities: Is a utility threatening you with a shut-off notice? Now is the time to act. As long as you file before the shut-off, service can be maintained and secured. Once again, don't wait until it is too late.

The idea of a fresh start is built right into the bankruptcy code. There are exemptions to protect your property and income, an automatic stay to protect you from lawsuits, and other features to make sure that bankruptcy gets you back on your feet... and doesn't destroy you. These is no reason to let old debts ruin your life, and the quality of life for your family. Take advantage of this fresh start this spring, don't let your 2017 be ruined by old worries and stresses. Contact us if you would like to discuss your own fresh start!