Many people think of filing bankruptcy as something horrible that tarnishes credit forever. But, if you’re having serious financial problems, bankruptcy can be a welcome solution that enables you to start over.

When you stop paying your bills, after a certain amount of time creditors will send your bill to a collections agency. The job of the collections agency is to get you to pay any way they can. The result is often rude and harassing phone calls that just increase the stress of your situation. Some companies even use scare tactics, like hiring off-duty police officers to deliver papers to your house. This might scare people into scraping together the money to pay the bill, often at the expense of other necessities, or paying it with a credit card, which just drives them deeper into debt.

The truth is, there is no criminal action that can be taken against you for being unable to pay a bill. There is no “debtor’s prison” in the United States. But if a creditor takes you to court over the unpaid bill, your wages could end up being garnished to pay it. And, if you’re already having financial problems, this just makes the situation worse.

If your wages are being garnished, you should call a bankruptcy attorney. The Law Offices of Eric K. Fox can help you. We will take steps to ensure that collections stop.

By filing bankruptcy, an Automatic Stay is issued that stops all debt collection, interest charges and late fees as soon as bankruptcy is filed. Best of all, it stops all harassing phone calls. Creditors are not allowed to contact you; they must go through the court or your attorney. Even creditors who want to repossess something (e.g., a car you’re not able to make payments on) must go through the court.

A common misconception is that you lose everything when you file bankruptcy. Actually, there are several allowable deductions and you won’t necessarily lose your house, your car, or other property. Depending on the type of bankruptcy you file and the nature of your debt, you may be able to wipe out part or all of the debt, which gives you the opportunity to recover from the heavy burden of financial problems.