No matter how hard you work to save and prepare for the future, life is sometimes out of your hands. You may lose your job, have an unexpected illness or injury or deal with medical bills that you cannot keep up with. Those who struggle with overwhelming debt can also suffer from physical and emotional distress that affects relationships and overall health. While many feel there is a negative connotation associated with bankruptcy, it can be an ideal way to make a fresh start when you cannot seem to get ahead.
Only the financially irresponsible file for bankruptcy
There is a certain amount of shame that people feel when they get in over their heads financially, but bankruptcy is not just for those that make poor choices. Suffering a serious illness, going through a divorce or losing a job are three causes that are common to bankruptcy and often outside your control. If you use credit cards to keep up on bills or to feed your family, it is easy to have those debts pile up quickly.
Filing for bankruptcy means your credit is ruined
Some avoid filing for bankruptcy because they fear the long-term effects it will have on their credit, but are pleasantly surprised at how quickly the offers for new credit cards start coming in the mail. Those who are on their way out of bankruptcy can benefit from a secured credit card that they make on-time, regular payments to each month to build credit again.
All property is taken away when you file for bankruptcy
A lot of your property is actually exempt when you file for bankruptcy, depending on the type of bankruptcy you file for. Homes and vehicles may be exempt in certain cases, although every state has different rules regarding what is exempt and what is not when a consumer files for relief.
Bankruptcy is only available to the desperate
Filing for bankruptcy is a proactive way to take control of your life and financial situation. Some fear that because they make too much money, they are not eligible to file for a fresh start. It is true that some may be denied if their yearly income is over a certain threshold, but it is almost always worth a shot.
Handling bankruptcy on your own is the best way
This process is too complex and important to risk going it alone. If you decide to file for any type of bankruptcy to discharge debts and start over financially, you should seek the advice of an attorney who has your best interests in mind.