Whether you’ve fallen behind on a mortgage, are struggling to keep up with daily expenses, or coming face-to-face with unexpected medical bills, the idea of filing bankruptcy may be weighing heavily on your mind. With its often negative reputation, though, you may be wondering if bankruptcy is really the right fit for you.
All negative connotations aside, though, bankruptcy exists for the average consumer – people just like you; because, let’s face it, anybody can get in a bind these days.
Bankruptcy is a legal process available to over-indebted consumers and businesses to help eliminate or reorganize your debts under the protection of the United States Bankruptcy Court. It provides protection from debt-collectors and aggressive creditors’ so that you have a chance to get caught up without fear of any negative repercussions.
There are several types of bankruptcy, most of which fall under the liquidation or reorganization categories, but the most common forms of bankruptcy are chapter 7 and 13.
Both individuals and businesses are allowed to file for bankruptcy under Chapter 7 and Chapter 13 is available to individuals with a reliable source of income. Both require meeting basic eligibility.
Bankruptcy may be a viable option for you if you want to stop a foreclosure, eliminate credit card debts, or stop creditors from harassing you, among many others.
Bankruptcy does have an adverse impact on your credit rating, however, that negative impact lessens over time, especially when you’re proactive about improving your creditworthiness. Many consumers who file for bankruptcy go on to rebuild their credit, purchase homes, and even start new businesses.
If you’re struggling with debt and are ready for a real solution, read on for more information or contact the bankruptcy and finance specialists at Vokshori Law Group.