After trying every possible strategy for regaining control of the finances, it’s obvious that the individual is sinking deeper in debt every month. With no hope of being able to pay off those debts under the current circumstances, the time has come to consider a Chapter 7 or Chapter 13 Bankruptcy in Hamilton OH. After meeting with an attorney and settling on a course of action, things will begin to change immediately. Here is what the debtor can expect to happen over the next several months.
Collection Calls Stop
When the papers for the bankruptcy in Hamilton OH are filed, the court notifies creditors immediately. While the petition is under consideration, collection calls are not allowed. If a call does take place, all the creditor is required to do is inform the creditor that bankruptcy was filed on a certain date. That should bring the calls to an end.
Not everyone realizes what a difference this one change makes. Once again, it’s possible to hear the phone ring and not be filled with a sense of dread. That’s because the caller is more likely to be a loved one and not someone who is demanding payment for a past due bill.
The Credit Score Begins a Slow Climb
Immediately after the bankruptcy, the debtor can expect the credit score to drop significantly. That is not as bad as it seems. Most people who seek bankruptcy protection already have damaged credit ratings, so the temporary loss of points is not as traumatic as some would think. What is often overlooked is how those scores begin to recover in the months to come. Even with a Chapter 13 bankruptcy that will take up to five years to settle, the debtor is likely to see the scores increase by a few points every month. By the time the court considers the bankruptcy to be fulfilled and discharges the debtor, that score could be better than it’s been in years.
Stop worrying about how to deal with crushing debt and contact us today. No matter how bad things look right now, help from a bankruptcy lawyer will make it possible to overcome the troubles of today and build a sound financial future.
