Bankruptcy is a word that a lot of people try to avoid bringing up. Some believe that entering bankruptcy is like admitting defeat. Others believe that it’s failing in their responsibility to pay back what they owe.
The truth of the matter is that bankruptcy was set up to help people who fall on hard times. Bankruptcy can be a good option to erase consumer debt and to help you get back into control of your finances.
While there are other alternatives to bankruptcy, such as consolidating your debt or trying to negotiate with creditors, sometimes, the damage is already done. If your credit score is tanking and you’re unable to pay what you owe, bankruptcy could get you back on track.
When does bankruptcy make sense?
Bankruptcy makes sense in a lot of cases. For example, if you’re trying to pay rent and for food but have nothing left over for other bills, it might be time to look into bankruptcy to help. If your income is low and you’re struggling just to make it from one paycheck to the next, bankruptcy could help you eliminate debts such as:
- Credit card balances
- Unsecured loans
- Medical debts
By eliminating some or all of these debts, the hope is that you would be able to more forward in a better financial position.
If you think that bankruptcy might be right for you, your attorney can talk to you more about the different kinds of bankruptcy and what to expect as you begin the process. You may be surprised by just how easy it is to get back in control of your finances.