Although it may sound counterintuitive, there are several situations where filing bankruptcy is the best possible choice to save your money. If you’re drowning in debts, being harassed by debtors and don’t know what to do anymore, you should consider taking this legal action.
Most people dislike the idea of bankruptcy since it feels like a dishonorable choice. However, it was created with the intention of aiding businesses and individuals who couldn’t repay their debts and wished to start with a clean state of their financial status instead of spending a significant time attempting to clear the obligations.
In the US filing for bankruptcy is much easier than other countries and the advantages far outweigh the disadvantages in most situations.
If you’re in a problematic financial situation, you might want to read the following article to get a grasp of why proceeding with bankruptcy could help you.
What Options are Available?
There are several legal proceedings you can file to start bankruptcy, each one depending on your status. Always ask for the assistance of a qualified and experienced lawyer to determine how you’re going to proceed.
One of the most sought actions by individuals is the Chapter 7 bankruptcy, also known as straight bankruptcy. With this proceeding, you’ll be able to discharge all your debts in exchange for selling some of your property and excess assets.
Yes, you will lose some of your priced items and depending on the case even property, but in exchange, you will save thousands by getting rid of debts and stop that never-ending cycle of fighting every month with debt collectors and having to cut all your expenses.
With Chapter 7 bankruptcy, you’ll have to head to court and present your case, including information about your financial situation.
It’s highly recommended that you hire a lawyer to assist you through the process and present your case at the court. The chapter 7 bankruptcy process isn’t exactly simple and will require knowledge of the legal system to get the best results.
The crucial advantage of this process is discharging all your debts, leaving you free of obligations towards your debtors.
However, most people are scared that bankruptcy ends up with you losing all your property and assets, losing all your credits in the present and future, and leaving a bad reputation in your credit score.
The truth is that it’s only partially correct, depending on your financial status you may keep some of your property that is exempted according to local law. You will lose all your credit cards, but if you restart your finances and make a plan, you might be able to get most of them back in a year or two.
Although your credit score will suffer, if you’re already drowning in debts bankruptcy will leave you with plenty of room to grow after discharging your debts, and you’ll be able to regain most of your reputation fast enough.
Loans, credits, mortgages, the increasing price of essential services, and over a dozen more types of debts are always concerning the minds of millions of Americans every day. Stop living month to month struggling to see which debts you’ll pay this month and which ones will only get worse.
Seek the legal advice of an experienced lawyer to find out if bankruptcy or other legal proceedings are beneficial for you and can end the cycle of debt collectors harassing you every month.