The first thing to understand about bankruptcy is that filing for bankruptcy is a right (subject to certain requirements). That means, United States lawmakers understood that many people often find themselves in tight financial situations. Due to various reasons beyond a person’s control (maybe a decrease in income, health reasons, or job loss, etc.) it is not uncommon to seek some type of debt relief. People from Walt Disney to Donald Trump have filed for bankruptcy!
Filing for bankruptcy is a very practical way of dealing with your debt. Contrary to mistaken belief, a person is not just “running away from their obligations” when they file for bankruptcy. Instead, a person who files for bankruptcy is being very responsible by addressing their creditors instead of ignoring their creditors. They are dealing with their obligations in the most efficient manner possible: either by repayment (in a chapter 13) or by liquidation (in a chapter 7).
If you are not making enough income to cover your debt payments each month, and if you find that every month your debts are continuously accruing even though you are doing everything in your power to try to make your payments, don’t worry, you are NOT alone. The good news is, you do have options.
To learn more about bankruptcy, take advantage of a free consultation and speak with one of our attorneys at the Stone Haven Law Group.