Two Signs Bankruptcy May Be A Good Option
Bankruptcy might sound like an ominous and scary term, but in reality, it can carry numerous benefits for those who are suffering under substantial debt that they don’t see any realistic way out of. As opposed to irresponsible spending, most Americans find themselves filing for bankruptcy simply because of financial hardship caused by not being able to offset unexpected major expenses such as the loss of a job or medical bills. In fact, medical issues are cited by more than sixty-five percent of those in the midst of bankruptcy as a key contributor to their financial downfall.
And while this can be a beneficial option for businesses, this fact is especially true for the individuals who file the most bankruptcies in this country according to the US Department of Justice.
Benefits of bankruptcy can include:
- Having overwhelming debt discharged or restructured
- Stay of creditor collection activities
- Halting evictions, foreclosures, and the garnishment of wages
- Financial counseling that can help you avoid financial constraints in the future
While bankruptcy can hold many benefits in the right situation, it doesn’t change the fact that filing for bankruptcy is a major step that involves lots of confusing paperwork and impacts multiple aspects of your life for an extended period of time. Therefore, you should consider all of your legal options prior to filing for bankruptcy and this should ideally be done with the help of an experienced attorney.
Bankruptcy may be a good idea if you have found yourself in the following two situations:
You Have Serious Debt that Appears to be Present for the Long Term
Everyone goes through financial issues at one point or another and in many circumstances these issues are temporary. Bankruptcy should be reserved as an option for serious situations in which you don’t see any realistic way for your situation to change in the foreseeable future. If you believe your situation can be rectified by simply getting a better-paying job that is within your reach or through some other obtainable means, you should pursue that alternate pathway before filing for bankruptcy.
You Understand and Accept the Potential Downside
Bankruptcy can unfortunately have several downsides that must be recognized in addition to the potential benefits. For example, you unfortunately may have to let go of certain assets or property. In addition, filing for bankruptcy can significantly impact your credit score as well as whether you are able to get a loan in the future and even where you can meet the requirements to rent a home. You may have to continue to disclose your bankruptcy to lenders long after it has fallen off of your credit report. And that’s all assuming your case is successful as there are no guarantees. It is imperative that you consider all of these factors before deciding to proceed.
Are You Struggling to Figure Out Whether Bankruptcy is a Good Option for You?
If you are considering filing for bankruptcy, you will most likely benefit from the help of a strong and committed advocate. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, we have an unwavering passion for providing solutions to those who have been crippled by overwhelming debt for far too long. We have dedicated ourselves to gaining extensive knowledge of bankruptcy law during our combined 40 years of experience and we have helped many other people in similar situations clear their debts. Contact us today for a free initial bankruptcy consultation to begin discussing how we may be able to help you too.