Bankruptcy is a legal way to remove yourself from under a load of debt and allow yourself to make a fresh start. Many people turn to bankruptcy when they feel that they cannot turn anywhere else.
The growth of consumer debt has caused over 1.5 million U.S. families a year to resort to filing for bankruptcy. There are various forms of bankruptcy, each one a little different. Thankfully, the numbers of those filing for bankruptcy have dropped in the past year. This comes on the heels of many years of climbing numbers.
One form of bankruptcy is Chapter 13; this form of bankruptcy is for individuals and not businesses. Chapter 13 allows the person to keep their home and some of their other assets. If you are worried about filing for bankruptcy and cars in your household, a car is usually protected under chapter 13. Seek legal help to know what your state’s policy is about assets.
Before deciding to declare bankruptcy, you may want to consider a few alternatives. It would be wise to try a debt consolidation program or a debt management plan. There are experts available to help you work through both of these processes.
Take the time to try to negotiate with your creditors. Many of them are willing to work out some sort of repayment plan. They realize that many families are having financial difficulties at this time.
Bankruptcy is costly and time-consuming. Better to do whatever possible to avoid it. Seek help from a lawyer or financial advisor to find out what would be best for your situation.