Discharging debts through bankruptcy.

Deciding which bills to pay and which bills to skip is a struggle many with substantial debts face every month. Spreading already thin finances across monthly demands from creditors can be stressful. One of the benefits of bankruptcy is the discharge of debts. Discharging a debt through bankruptcy means the debtor is no longer legally obligated to pay that debt. For debtors who meet certain income requirements, they often are able to discharge a substantial amount of their personal debts in the bankruptcy process. Discharging burdensome debts such as credit card debt and medical bills is oftentimes exactly what a debtor needs to gain a fresh financial start with a new, successful budget. Bankruptcy can help a debtor clear the slate, however not all debts may be discharged in bankruptcy. Unfortunately, some debts can be difficult to discharge, such as student loans. Although, a debtor’s ability to eliminate a significant portion of their debt is often what they need to manage their finances, including remaining debts, as they move forward.If you are the recipient of unending collections calls or legal action or have questions about bankruptcy, including the benefits of the automatic stay, please contact Attorney Kayla E. Boehlen at 413-730-4455 or kayla@law-eb.com for a free initial consultation.

Can I stop collection calls?

Individuals confronted with substantial debts know all too well the constant stress caused by never-ending phone calls from debt collectors demanding payments and the torrent of mail threatening legal action in order to collect a debt. These continual collection efforts are often overwhelming for those struggling to find a way out of debt, particularly when the amount of money demanded is often impossible for a debtor to meet. A debtor who has filed a petition for Chapter 7 bankruptcy can stop the onslaught of collection phone calls and legal action through one of the benefits of bankruptcy, a process known as an automatic stay. The automatic stay is an injunction that puts an immediate halt to harassing collection actions, including any pending lawsuit against the debtor. In most cases, the automatic stay becomes an effective tool to assist a debtor in carefully working to rebuild their financial future. In addition to stopping collection calls, demand letters and legal action, the automatic stay also prevents creditors from seeking wage garnishments, foreclosing on a real estate owned by the debtor, and efforts to repossess the debtor’s personal property. The automatic stay does not prevent collection of debts forever, but it does provide a debtor with much needed breathing room, and protects a debtor’s assets, while they can figure out how to move forward with their finances. If you are the recipient of unending collections calls or legal action or have questions about bankruptcy, including the benefits of the automatic stay, please contact Attorney Kayla E. Boehlen at 413-730-4455 or kayla@law-eb.com for a free initial consultation.

Could you benefit from bankruptcy?

The effects of COVID-19 have left many with financial struggles. The uncertainty of secure employment, coupled with increasing debts presents an unclear path forward for many families across Massachusetts. The thought of filing for bankruptcy is often met with fear and apprehension; due in part to the stigma associated with "going bankrupt." Many worry that bankruptcy will ruin their credit or they’ll lose all of the assets they’ve worked hard to obtain. To the contrary, bankruptcy may be a wise option for some for multiple reasons. Bankruptcy can provide those saddled with overwhelming debt with a fresh start and financial security. It also provides debtors with other benefits, including relief from collection actions, the ability to discharge debts and a way to rebuild a stronger financial future.

In the coming weeks Ence & Boehlen, PLLC will present “Benefits of Bankruptcy.” A series designed to introduce many of the lesser known benefits of seeking bankruptcy protection and dispel many of the fears and misconceptions often associated with filing Chapter 7 bankruptcy petitions. If you are considering filing for bankruptcy or have questions about the process, please contact Attorney Kayla E. Boehlen at 413-730-4455 or email her at kayla@law-eb.com for a free initial consultation.