Bankruptcy is something that many people don’t even want to consider, but the reality is that it’s a good way to get out of debt under certain circumstances. Take, for example, a person who no longer works and who cannot make payments on their debts.
Their debts are largely made up of credit card bills and unsecured loans, so filing for bankruptcy is likely to dismiss those debts and help them get a fresh financial start. Putting off bankruptcy doesn’t help make the situation any better, but it can mean dealing with harassing phone calls from creditors, court judgments and more.
Why choose bankruptcy?
If you are in debt and can’t see a way out, then bankruptcy may be a good choice for you. Some times when bankruptcy may be the right answer include when you:
- Are at risk of foreclosure
- Lost a job and cannot make payments on your debts
- Have tried to negotiate with creditors to no avail
- Have done your best to repay debts but find yourself “treading water”
- Want to find a way to get a fresh financial start
Bankruptcy comes in two primary forms for consumers, Chapter 7 and Chapter 13. If your income is low or nonexistent, then Chapter 7 is likely the type of bankruptcy that will be right for your situation.
Our website has more on Chapter 7 bankruptcy and what you can do if you want to pursue bankruptcy to clear your debts. This may be the answer that you’ve been looking for to put an end to creditor harassment and overwhelming debt.