Last week, we talked about how some debt-relief measures might not be all they are cracked up to be. Sometimes, organizations offer help, but they treat the symptoms of the issue rather than the root cause of the financial distress. Bankruptcy, along with a greater understanding of your financial situation into the future, can do more than other forms of debt relief that simply help you organize how you make payments to creditors.
Chapter 7 bankruptcy can be a booster shot that sets your financial situation on a path to recovery. The reasons that you are struggling with debt can be myriad. You might have incurred serious medical expenses that threw everything else into a tailspin. You might have taken on more debt than you could handle because you didn’t understand your financial situation. A sudden change in income level or job might have created a debt-to-income ratio you aren’t prepared to deal with.
Whatever the cause of your debt situation, bankruptcy can be an option for addressing the root of the crisis. During Chapter 7 bankruptcy, you work with a legal professional who helps you understand your options and create a plan for dealing with the debt. You work through the court system to liquidate certain assets and make less-than-owed payments to many creditors in exchange for discharge of debts.
The truth about bankruptcy is that you don’t always lose your home in the process; in fact, you might be able to save your home from foreclosure because you filed. You also don’t ruin your credit for life, although there are temporary consequences, and you have to be prepared to build your credit again. Our staff works with you so you understand everything that’s involved in bankruptcy and can reset your financial life so you are able to begin building again.