While it can be stressful having to go through serious financial trouble, there may be a way to get the fresh start that you need. Many people turn to bankruptcy when they find themselves no longer able to pay off past debts and current bills. If you're in this situation, you may be wary due to the fact that bankruptcy stays on your record for many years. The truth is there are many benefits to this process.
- Filing for bankruptcy is never an easy option but for some individuals, it may be the only way out of crippling debt. There are two main bankruptcy chapters, 7 and 13, that apply to individuals. Below are three reasons you may decide to file for chapter 13 bankruptcy over chapter 7. You Don't Qualify for Chapter 7 Chapter 7 bankruptcy has much stricter guidelines to be met since many of your debts will be fully discharged under this chapter.
- There comes a time in some people's lives where the debt that they have acquired is more than they can afford to repay on their current income. Financial problems can arise due to job loss, a long illness with substantial medical bills, or simply overspending and poor financial planning. If you are in a position of not having the means to repay your debts, and you have a number of creditors contacting you, filing bankruptcy may be a valid option.
- Getting into financial trouble can be an extremely stressful experience to go through because you may be facing aggressive creditors attempting to collect extremely expensive bills. Fortunately, there are debt relief programs that can help you to escape this trap and start on fresh financial footing. However, if you have never used these programs, there is as strong chance that you will benefit from having the following couple of questions answered before choosing these services to address your financial needs.
- A countless number of Americans are pursued by debt collectors every day. Not only can they have a negative effect on your credit score, but debt collectors often have the power to file a lawsuit against you. If you're already dealing with an overwhelming amount of debt, adding a lawsuit into the equation only makes matters worse. Protecting yourself in this type of situation begins with you responding to the lawsuit, not ignoring it.