One inevitable part of getting behind in bills is the constant calls from collection agencies. They do their best to squeeze blood from a stone, calling you seemingly non-stop. While you do have protections under the Fair Debt Collections and Practices Act (FDCPA), the collectors still manage to do their best to annoy you within the legal limits. You would pay your debts if you could, but you’re broke, so you have to put up with the credit collections Knoxville Or do you?
If you’re at a point where you’re out of money and nothing’s going to change in the forseeable future, you might want to consider bankruptcy. Completing bankruptcy creates a permanent injunction against your creditors, preventing them from ever attempting to collect from you ever again. It also has an immediate effect of stopping the credit collections Knoxville calls when the petition is filed. Your sanity returns as the phone stops ringing off the hook.
There are definite drawbacks to filing for bankruptcy, but all of them are temporary in nature, and are not as large of a burden as you may think. You stop paying out on your debts, freeing up a large portion of your income to use as you need, and can start saving money as well. You break the debt cycle when you file, and learn lessons about how to handle your money going forward. Another benefit is that since you now have money, you can pay larger amounts of cash towards items and deal less with financing.
It is true that bankruptcy disrupts your credit for seven years, but it’s not a complete and total loss for all of that time. Your credit starts recovering after the discharge is entered, although you are not going to be inundated with credit card offers off the bat. What you can do is get secured credit cards that help you rebuild your rating the more you use it, and low-limit high-risk credit cards that are unsecured.
Contact a bankruptcy lawyer at your first available opportunity to discuss your situation. He can answer your questions, give you an idea of what to expect, and help you file if you choose to do so.