Many who qualify for bankruptcy never avail themselves of its potential benefits because they fail to get enough money for mortgage and other debts. Once the median household net worth declines, debt is simply the default option in bankruptcy, compared to bankruptcy itself. When those who want to escape debt by bankruptcy get there, they tend to make bad decisions, resort to litigation, and jeopardize their financial well-being. Thus, there is an essential need for people to understand what bankruptcy is, how it works, and how it protects them from financial disaster.
Those who qualify for bankruptcy may do well to consider having them file, they just need to get the necessary assistance from a bankruptcy law professional. For all, having a foreclosure process and the threat of it can be paralyzing, especially when the asset owned is one of utmost importance to those affected. After all, the financial state of the household changes after such a process is initiated, as is the home itself. As someone who was fortunate enough to have taken advantage of bankruptcy, I can attest to the positive effects it has had on my family. It has, however, to be balanced against the risks it entails.
As a 25-year-old father of two, the decision to file for Chapter 7 bankruptcy was no easy one. I wanted to continue the course I had taken, and have a good reason for the filing. As a result, my job was put on hold while the filing was pending, so I found myself in the same position of not being able to work. The cost of living was lessened, but the decision was a difficult one to make.
Finding an attorney who will fight for your best interests can prove challenging, especially with these outstanding debts. With this type of a situation, you may have to fight through numerous delays, which not only eat away at your mental and physical health, but also delay the process. At the end of the day, I was able to complete my bankruptcy, and it paved the way for my future.
Of course, there are many people who are unable to file for Chapter 7 bankruptcy. To receive it, a person must have been a resident of the United States for at least a year; cannot have unpaid loans, personal guarantees, or accounts; and be able to show that all debts that are more than five years past due have been discharged. I feel like it’s important to make this distinction because individuals who are eligible may find that they are unable to get to their financial emergency point.
While we all face the challenges of bad decisions and debt, bankruptcy can be a game changer for people of limited means. It ensures that they have money to continue to put towards their debt repayment, and allows them to avoid litigation. It is very important to research the terms and conditions of your insurance plan to ensure that your protection will be the same.
Outsourcing is the greatest way to avoid taking on more debt. Rather than fighting with your family and debtors over money, you can make the burden yourself. Having an attorney to help you with this is a big boon, as you have more access to protection.