Taking on more debt than a person can handle tends to cause serious stress. This is bad for the person psychologically and can even cause physical illness. When digging out of this hole proves to be impossible and there are no options for debt consolidation loans, asking for representation from a Bankruptcy Attorney In University Place Wa may be the most suitable option.
Common Types of Individual Bankruptcy
Chapter 13 allows this individual to build a repayment plan with creditors that lasts up to five years. Chapter 7 uses certain assets that are left to pay creditors as much as possible before eradicating the rest of the person’s debt.
Research on Emotions
A study from a British university has found that people with unmanageable debt are more than twice as likely to suffer from ongoing depression than those without this problem. In fact, more than 80 percent of people with serious debt issues are dealing with depression and chronic anxiety.
Many people in this situation feel ashamed and perhaps hopeless. They are very critical of their financial behavior. They have lost a great deal of self-confidence and may feel a certain loss of personal identity. They wonder how they ever allowed things to get this bad.
An Emotional Toll
It can take a while after seeking help from a Bankruptcy Attorney In University Place Wa before the individual starts to calm down. Previously, every phone call or knock on the door felt like a possible threat. It might be a credit card collections department, a collection agency, a law firm or the dreaded arrival of a process server handing over a summons. The ongoing anxiety and fear has an emotional toll, disrupting sleep and sometimes leading to excessive drinking.
Cease and Desist
After a lawyer such as Rafal Gorski files bankruptcy documents with the court, collections efforts must stop or the organization contacting the person can be held in contempt. Filing bankruptcy creates a cease-and-desist situation that protects the person from this activity. The harassing phone calls end and the individual is no longer scared of a knock on the door. Utilities cannot be shut off even if the person is past due on payments.
