Eliminate Debt With Bankruptcy
If you have made every effort to repay money you owe to creditors, but still find that it isn’t enough, you may be eligible to eliminate debt with bankruptcy. By filing Chapter 7 or Chapter 13 bankruptcy, you can pay back, reduce, or even get rid of your debts, and get a fresh start financially. This can all happen without having to deal with creditors calling or sending letters, wage garnishment, or lawsuits.
Once you eliminate debt with bankruptcy, you have a newfound freedom and general sense of being able to breathe. Chapter 7 bankruptcy allows for the liquidation of assets to pay off existing debts. Chapter 13 bankruptcy restructures the debt so that you make regular, affordable monthly payments over a period of three to five years to pay back the money that is owed. Although either choice is a legitimate way to eliminate debt with bankruptcy, Chapter 7 requires that you take a means test to determine that you are unable to afford to make monthly payment, while Chapter 13 allows you to keep your assets while repaying the debt.
The decision to eliminate debt with bankruptcy is not one that should be made lightly, nor is it without consequences. A bankruptcy stays on your credit report for seven to ten years, making it more difficult to obtain credit in the future. During the time that a Chapter 13 bankruptcy is active, you are legally prohibited form incurring more debt. Although this is done as a safeguard to prevent you from adding to the amount you owe, many do not like feeling restricted financially. And finally, all bankruptcy decisions are a matter of public record. If you file for bankruptcy, anyone can look up the case and see it. If you do not want to have this information made public, bankruptcy may not be the solution for you.
Bankruptcy should not be seen as an easy ticket out and therefore an excuse to behave recklessly and amass an overwhelming amount of debt. The bankruptcy code was created with the intent of helping those who have made an honest attempt to get out of debt. It was not created to encourage irresponsible behavior. In reality, though, most people who find themselves declaring bankruptcy are doing so due to circumstances largely beyond their control. And this is where the ability to eliminate debt with bankruptcy is seen as a welcome solution to a dire need.
No one wants to feel overwhelmed with debt. No one wants to deal with unending calls from creditors, wage garnishment, or lawsuits. Chapter 7 or Chapter 13 bankruptcy can be a way to end the disheartening cycle, get a fresh start, and take the first steps on the road toward financial freedom.