Some readers in California may be struggling with the decision to file for a personal bankruptcy. There is no reason to have such stress, says one famed television commentator. In fact, says Suze Orman, a personal bankruptcy has many benefits that make it a good choice for certain people.
In a report from Orman, she asserts that a personal bankruptcy filing can help inform creditors of the inability to repay debts. This is a better result than if a person fails to make payments for a period of time. In these situations, creditors can sue to get paid, causing not only stress but also financial loss.
In contrast, with a personal bankruptcy filing in California, people can expect to retain some, if not all, of the property that they own. This is especially true in the case of a Chapter 13 bankruptcy. This type of filing leads to the creation of a repayment plan by the court that typically lasts for three to five years and results in creditors receiving much of what they were owed.
There are many options for the filing of a personal bankruptcy. Because of the range of options, exemptions and rules governing the process, it is often wise for people in financial distress to seek information from those who are familiar with the process. In addition, the same people can gain confidence about their decision to file a personal bankruptcy when they learn of the advantages that to can have to someone who has had difficulty making debt payments for any one of a variety of reasons.
Source: CNBC.com, The good thing about bankruptcy, Sakina Spruell, Oct. 21, 2013