There are a number of signs that suggest that an individual’s debt scenario has reached a critical level. One of those signs is an immediate and intense sensation of dread when the phone rings. For those in Maryland who have fallen seriously behind on their bills, collections calls can lead to a high level of anxiety, which can in turn lead to a number of problems related to health and happiness. Fortunately, there are a number of solutions available, up to and including seeking bankruptcy protection.
When an individual files for personal bankruptcy, a number of events are set into motion. One of the first changes that take place is the elimination of collections efforts. Once creditors and collections agencies are made aware of the bankruptcy filing, they are prohibited from continued collections efforts on those accounts.
For those who feel ashamed of their current debt levels, it is important to understand that this is a wide-reaching problem that affects people from all walks of life. Recent research suggests that some 77 million Americans have at least one account that is currently in collections. Whether it is an unpaid cell phone bill, a long overdue credit card account or a series of medical bills, having a collections agent come calling is not an unusual experience for many people.
When considering how to best address a serious debt problem, Maryland consumers should take the time to research the pros and cons of personal bankruptcy. While this is not the best solution for everyone, the benefits of bankruptcy protection can make a world of difference in the daily lives of many consumers. Understanding how this financial tool can change one’s own debt outlook is an important step in taking control of unmanageable debt.
Source: NPR, "Chances Are Pretty Good That's A Bill Collector Calling", Marilyn Geewax, July 29, 2014