Struggling with debt? You are not alone -- and bankruptcy may help

July 20, 2013 /24-7PressRelease/ -- Deciding to file for bankruptcy can be a scary step to take, even when the only other option is to struggle endlessly under the weight of unmanageable debt. When considering bankruptcy, it is not uncommon to feel embarrassed or ashamed. However, you should not let those feelings stop you from taking the steps necessary to get control of your finances and start putting your life back together. If you feel like your debts are out of control, it may comfort you to know that many other Americans are struggling with circumstances similar to yours.

Debt can strike anyone at any time

The truth of the matter is that debt and bankruptcy affects people from all different walks of life, from manual laborers and office professionals to doctors, movie stars and professional athletes. Particularly in the wake of the Great Recession, as the nation grapples with widespread unemployment and deflated real estate values, many people are finding themselves in difficult financial circumstances they may never have anticipated just a few short years ago -- often through no fault of their own.

People today find themselves deep in debt for a wide variety of reasons, including job loss, medical problems, failing investments and even, ironically, the quest for higher education or better employment prospects. When these debts become too much to handle, bankruptcy can often offer a way out of debt and back on the track to good financial health.

Bankruptcy may provide debt relief

If you are considering bankruptcy as a possible solution to your financial difficulties, it may help to learn more about the bankruptcy process and how it may be able to help you find your way out of debt.

For many people, one of the main benefits of bankruptcy is the fact that it often allows borrowers to discharge some or all of their debts, meaning that they no longer have to be repaid. Debts that can frequently be discharged during this type of bankruptcy, which is sometimes called liquidation, include credit card balances, medical bills and other forms of unsecured debt. However, some debts are typically ineligible for discharge during bankruptcy, such as past-due child support, certain taxes and most educational loans.

For people who do not qualify for debt discharge, another type of bankruptcy allows borrowers to restructure their debts and spread the payments out over a number of years. This type of bankruptcy, often referred to as reorganization, has the advantage of giving borrowers an opportunity to catch up on many types of debt that are not eligible for discharge during liquidation bankruptcy.

Automatic stay stops creditors

Another potential benefit of filing for bankruptcy is that it gives borrowers access to a powerful legal tool called an automatic stay. This is a court order that goes into effect as soon as a person files for bankruptcy, barring creditors from taking collection actions against the individual. Because of the automatic stay, filing for bankruptcy can often provide immediate relief from creditor harassment and collection actions, including foreclosure, repossession and wage garnishment.

For many borrowers, bankruptcy provides an opportunity to break the cycle of debt and declining credit, allowing them to begin again with a clean financial slate. Although it requires hard work and careful planning, many people are able to rebuild from the ground up and restore their financial health more quickly than they had expected after filing for bankruptcy. If you think bankruptcy may be right for you, be sure to talk your situation over with a qualified bankruptcy attorney in your area.

Article provided by Faletti Law Office, P.C.
Visit us at www.falettilaw.com

---
Press release service and press release distribution provided by http://www.24-7pressrelease.com

Source: http://finance.bnet.com/bnet/news/read?GUID=24685063

Adairsville Ga ashley judd Alois Bell Donna Savattere deer antler spray Jason London rick ross