Bankruptcy is often a possibility for people who are unable to pay their bills. Unfortunately, many people who can benefit for filing wait until their finances are so bad that they suffer needlessly for years before contacting a lawyer. There are three important ways that Bankruptcy in Grand Rapids MI can help you get back on your feet.
As soon as your paperwork is filed you get an automatic stay. Automatic stay means creditors can be fined if they call you or otherwise contact you about your debts. Because people in serious debt spend a lot of time dodging creditor calls, this part of the bankruptcy code provides immediate relief. The stay remains in place until your bankruptcy is discharged but may be lifted for some creditors, such as auto lenders, if you don’t make your payments and they want to repossess your vehicle.
When you file for bankruptcy in Grand Rapids MI, you will have to attend two sessions with a credit counselor. Mandatory credit counseling will teach you ways to budget your money and avoid the problems that led to your bankruptcy. You’ll get professional tips and advice to help you as you begin your life without debt. While it may be difficult to reestablish your credit after you file for bankruptcy, the things you learn in credit counseling will help you manage your money so when you are able to get another credit card or car loan, you will buy things within your means and pay your bills on time.
With unsecured debts like credit cards and medical bills discharged, you can focus on saving money and meeting your other obligations such as child support and student loans. Not paying child support, whether it is because you are too deep in your other debts or for some other reason, can result in jail time. With unsecured debts out of the way, you can meet the obligation and ensure your children have the best quality of life. Defaulting on a student loan makes you ineligible for college grants or loans. By making the required payments on your student loans, you will be eligible for educational assistance for yourself or your children in the future.