The word bankruptcy is enough to strike fear into any heart. Yet more than 800,000 Americans file for bankruptcy every year, and for the majority of them it brings relief and closure to what has often been years of struggling against a rising tide of debt. Most bankrupts are not down and outs or high flying entrepreneurs who have suffered a fall from grace. They are everyday people like you who have become ensnared in the easy credit financial environment of the 21st century.
Bankruptcy: It’s Not the End of the World
There is an automatic assumption that bankruptcy is a last resort, a final nail in the coffin when all else fails, but the truth is quite the opposite. One Scottsdale bankruptcy lawyer says that nine times out of ten, filing for bankruptcy gives the individual an opportunity to start afresh and get his or her life back on an even keel. Let’s find out more.
A rational decision
Filing for bankruptcy is one of a number of options if you have financial difficulties. The most important thing is to weigh up these options rationally and objectively – and for that, you will need expert advice.
If you have a large number of personal debts and you just can’t afford to repay them, for example credit card balances, personal loans, etc, they will generally be wiped from the slate under a Chapter Seven Bankruptcy– gone. However, some debts, such as child support obligations or most legal judgements, will still remain.
Many people worry about losing their property if they file for bankruptcy, but unless they have specifically put it up as security against a loan, this is unlikely to happen. It is important to understandthe specifics of bankruptcy exemptionsto see how this will affect you.
Can you afford it?
It almost sounds like a bad joke, but it is quite costly to file for bankruptcy, and for some people, it would be a great solution if they could only afford it. The exact costs will vary depending on which chapter you are filing under and the level of administration and legal support needed, but on average, you are looking at no less than $1,500 and no more than $3,000.
Is it right for you?
Everyone’s circumstances are unique, so it is important to get expert advice. Bankruptcy can be the perfect solution to get the worry of escalating debt lifted from your shoulders once and for all.
There are pros and cons to any decision, though, and for many the largest negative is the connotations that the word brings when others find out what has happened. If you are comfortable to live with that, it could be an option worth seriously considering.
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