Most people find themselves in a tight financial situation during their lifetime. During such times many individuals can climb back up out of the financial hole that they find themselves in, but in some circumstances the issues that have caused financial strain to have literally caused all financial resources to be drained. This is when they might consider bankruptcy. Yes, the word bankruptcy sounds scary to most of us, but the truth is that for many, bankruptcy offers a fresh financial start.
When considering whether bankruptcy will help fix their financial distress, individuals need to consider many things. Questions to ask themselves include do they have any judgements against them, are creditors calling nonstop demanding payment, are they having to live off credit cards, and are they to the point in which they cannot even provide their family with the necessities of life. If those questions are answered with a “yes,” then it is possible that filing bankruptcy may need to be seriously considered.
When filing bankruptcy, individuals will need to consult an attorney. Depending on what the situation is, will dictate what type of bankruptcy the individual can file. The most common type of bankruptcy for single individuals and married couples is Chapter 7 bankruptcy. Filing chapter 7 bankruptcy effingham county ga does have some major cons. Chapter 7 bankruptcy will ruin someone’s credit initially and does stay on their credit report up to 10 years. If they choose to file Chapter 7, they will also risk losing some property. Most states will offer them some exemptions so that they are not left homeless or without a car, but if they have multiple pieces of property, then chances are that they will be seized by bankruptcy court.
Another huge thing to consider, is that if they are drowning in debt due to student debt, that there is no bankruptcy that eliminates student loan debt. Also, even if a person files bankruptcy, they are still obligated to pay all alimony and child support that has been court ordered, even if it is in arrears.
There are plenty of things to think about when it comes to filing bankruptcy and the best place to start is probably by seeking an attorney that specializes in bankruptcy filings. Such an attorney can advise someone what their options are, and some may be surprised to find that an attorney recommends other options besides Chapter 7. If they do recommend filing Chapter 7 bankruptcy, then they will walk with the individual through the process and will do their best to protect any assets that they might have.
Filing bankruptcy is a hard decision to make and it leaves a sinking feeling in the emotions of some. It is possible though to rebuild after bankruptcy and in some situations, there honestly may not be any other choices left. If you know someone who is going through financial hardship, then maybe mention the possibility of bankruptcy to them to see if it is an option to explore.