Getting a fresh start is a term of art used for filing bankruptcy. A fresh start is an opportunity to start over without prejudice. Basically, bankruptcy gets you out of debt and allows you to rebuild your credit. Here are the top 5 reasons why bankruptcy can help you get out of debt:
Stops Foreclosure & Repossession
If you’re on the cusp of losing your home or car, then filing bankruptcy is a way to stop the process so you can keep your house and car. A Chapter 13 bankruptcy allows you to get current on your mortgage and car payments by repaying the missed payments over the next 3-5 years.
Eliminates some IRS tax debt
Bankruptcy can eliminate taxes older than three years provided the taxes were filed more than two years ago. This means that if you timely filed your taxes, you can get rid of tax debt from 2016, 2015, 2014, and older. After April 15, 2021, you can eliminate 2017 taxes. If you owe taxes from 2018-2020, you cannot get rid of that tax debt, but you can repay those taxes in a Chapter 13 without paying the high IRS penalties and interest.
Eliminate credit cards, medical bills, and other unsecured debts
The interest rate on credit cards makes it hard to pay off those debts and an unforeseen accident can put a severe strain on your finances. Filing bankruptcy gets rid of unsecured debts such as credit cards, medical bills, overdraft accounts, lines of credit, etc. Basically, bankruptcy eliminates most unsecured debts except for student loan, child support, alimony, and restitution.
Stops collection lawsuits, judgment, garnishments, and harassing phone calls
A bankruptcy will put an end to any collection lawsuits, judgments, garnishments and harassing phone calls. When you are in a bankruptcy, creditors can no longer contact you or collect any debts. If your paycheck is being garnished, then look at filing bankruptcy as it will immediately stop the garnishment.
Contact Colorado Debt Help to get a fresh start to your overwhelming debt.
Get a Fresh Start
A lot of people don’t realize that you can rebuild your credit after filing bankruptcy. In fact, using the proper methods, a person can obtain a 700 credit score within one year after filing bankruptcy. Although bankruptcy is listed on your credit report for ten years, it marks the date in which you can rebuild your financial life. Bankruptcy actually helps you rebuild your credit if you can’t afford to pay your bills.
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