Let’s face it… anyone who ever files for bankruptcy needs it. Often times due to circumstances out of their control, people have no other option than to file for bankruptcy to eliminate or reduce debt. A typical scenario is a person that has large amounts of credit card debt and is hit with an unfortunate event such as losing a job, divorce, or uninsured medical costs. Bankruptcy law was created for these scenarios so that a person hit by a series of unfortunate events could recover instead of having the weight of insurmountable debt on their shoulders for the rest of their lives. Now there are some types of debts that neither Chapter 7 Bankruptcy nor Chapter 13 Bankruptcy can get rid of, such as tax debt, student loans, child support, but it is certainly a viable option for those with under water mortgages, credit cards, etc. It can either be wiped out completely or significantly reduced.
If you are struggling financially and have debt that you feel you may not be able to pay back given your current situation, bankruptcy is certainly an option to get you back on your feet. One common misunderstanding is that bankruptcy will ruin your credit; however, oftentimes your credit is no worse off than before the bankruptcy was complete and can even come out better once all the debt has been discharged or reorganized. If you’re on the fence about it because you have reservations of what it might do to your credit or future financial viability, an article written in the New York Times sheds light on how much Ch. 7 Bankruptcy and Ch. 13 Bankruptcy can be a lifesaver for consumers in hot water. Click on the link here to read the article in full: http://www.nytimes.com/2009/01/24/your-money/24cost.html?_r=0
As you can see, bankruptcy is wrongly associated with terms like guilt and shame, and is simply a perfectly viable option for good people to get out bad circumstances. A bankruptcy attorney can help an individual considering bankruptcy with things like knowing when to file and whether to do so under Chapter 7 or Chapter 13 Bankruptcy. Most bankruptcy lawyers offer a free initial consultation. If you or a loved one would like more information, feel free to give the Goldbach Law Group a call.