Is Bankruptcy Right for You?

When your debts begin to exceed your income, filing for bankruptcy can give you the opportunity to rebuild your financial life. However, the process does impact your credit score and could impact your ability to secure loans or credit in the future, so it’s important to weigh all options carefully before proceeding with this step. There are also other alternatives, such as seeking help from a nonprofit or working with a debt relief agency.

One of the most common reasons people consider bankruptcy is that they cannot realistically keep up with their debts. A significant illness or injury, for example, can lead to medical bills that far surpass your income. In addition, many Americans are overextended with credit card balances due to high interest rates and minimum payments that barely touch the principal.

Filing for bankruptcy can stop creditors from pursuing their claims and may even erase some debts, which can be an enormous relief for people who feel overwhelmed by unmanageable expenses. It can also help consumers avoid foreclosure, car repossession and eviction while protecting their assets. In fact, the law allows you to retain most of your possessions with certain exemptions, depending on the type of bankruptcy you choose.

While many people feel a strong sense of obligation to pay their debts, some circumstances make it impractical. If you’re struggling to provide your family with the basics of food, clothing and shelter, for example, bankruptcy may be the best or only option for you. In such cases, it’s important to consult with an experienced bankruptcy attorney near me to discuss your alternatives.

Bankruptcy is a complex, lengthy and complicated process with a long-term impact on your credit score. It’s vital to understand the full impact before making any decisions, which is why it’s a good idea to seek a free consultation with an experienced bankruptcy lawyer.

Misconceptions about bankruptcy can create unnecessary stigma, including the belief that those who file for this form of debt relief are irresponsible with money. In reality, the majority of bankruptcy filers are struggling with unmanageable expenses, including unexpected and substantial medical bills.

Some people believe that they will lose all their belongings or never be able to secure credit after filing for bankruptcy, but these are both false. The law allows most bankruptcy filers to keep their homes and cars, as well as personal property like jewelry and tools of the trade, by shielding them through exemptions. In addition, the majority of bankruptcy procedures allow debtors to combine or consolidate their debts into a single monthly payment that they can afford to repay, so there is usually a way for people who file for bankruptcy to remain in good standing with their creditors.

Ultimately, the decision to file for bankruptcy is a personal one and a big commitment. The right bankruptcy strategy can help you regain control of your finances, so it’s worth the effort to work with an experienced attorney who can explain your options and guide you through the process.

Cain & Herren, ALC
2141 W Vineyard St, Wailuku,
HI 96793, USA
+1 (808) 242 9350
cainandherren.com