If you are struggling with overwhelming debt, the practical and emotional stress is likely weighing heavily on you every day. Rather than avoiding the problem, you need to find a workable solution so you can begin to get your financial future back on track.
Although filing for bankruptcy is a serious decision that merits careful consideration, for many people, it can be the most positive decision they make with regard to their financial health. A personal bankruptcy can often turn a bad situation into a fresh financial start and be the first step in terms of a new beginning. You should understand a few basic concepts about bankruptcy if you are considering it as a possibility in your situation.
Who can file for bankruptcy?
There are several different types of bankruptcy filings based on whether the filing is for an individual or a company. Each type of filing also carries certain requirements with it, and the different types of filings vary in the way they deal with debt. For individuals, Chapter 7 and Chapter 13 bankruptcy are the two options to consider. While bankruptcy filings are open to almost any citizen, not everyone will necessarily qualify. There are certain standards that an individual has to meet, including income level, ability to repay, and previously discharged debts, to name a few. A bankruptcy court judge will determine whether the debtor meets these requirements.
Will bankruptcy ruin my life?
There are many myths surrounding bankruptcy, and one of them is that a bankruptcy filing will ruin your life and your financial future. In truth, bankruptcy can give you a fresh start, and as such, it is often a constructive and positive step. It allows a person who is deeply in debt to rebuild their financial picture by discharging and/or reorganizing debt in a way that allows for a structured payment plan to get it under control.
Do not let common myths about bankruptcy fool you into thinking it is not a viable option in your particular case. Inform yourself about the legal possibilities in your situation if you are considering filing.