A personal bankruptcy may seem like something that would ruin your future potential, but the reality is that it can set you up for better financial security. Many people make financial mistakes at a young age or fall into financial difficulties as they lose jobs or suffer from health conditions. It’s your right to choose bankruptcy if you cannot pay your bills and have fallen behind. It is there to protect people in your situation and to help you build firm financial footing for the future.
There are always advantages and disadvantages to bankruptcy, but the benefits often outweigh potential losses. Take, for example, Chapter 7 bankruptcy. With this form, you have to liquidate your assets. However, you likely won’t lose everything thanks to the exemptions provided by the law.
Bankruptcy also eliminates much of your debt. If your credit has already taken a hit and decreased dramatically, bankruptcy isn’t going to hurt it much more. In some cases, people going through bankruptcy have actually seen their credit scores increase.
On top of this, you’ll stop getting calls from creditors. As soon as you enter into bankruptcy, you can tell any who call you to reach out to your attorney instead. Additionally, you could stop foreclosures and repossessions until you’re in a position where enough of your debts are gone to save those assets.
Your attorney can help walk you through the benefits and downsides of a bankruptcy. With help, you can get back on track with your finances and be in a better financial position as you move forward.