There is a social stigma attached to the term bankruptcy. Let’s take a look into what this process is and see that it is not the end of the road, as some people think. Bankruptcy can be seen as an opportunity to start over. Bankruptcy laws were designed to give people a second chance, not to punish people.
Reasons to File for Bankruptcy
Unforeseen life events such as medical debt or job loss for an extended time are the most common reasons for bankruptcy. Sometimes, people have more than one of these happening at the same time, causing financial problems for any family.
Other reasons such as a divorce, creditors suing for payment of debts, home in danger of foreclosure, using credit card as a last resource, and so on. Bankruptcy can save your home and give you time to catch up on the debt.
Questions that Should be Raised Before Filing for Bankruptcy
Have you tried to negotiate your debt down to manageable numbers?
Is this current status permanent? Or can you expect the situation to change soon?
Do you have a large set of bills coming your way soon? If yes, you may want to put this on hold until you decide to file bankruptcy.
Do I Qualify for Bankruptcy?
Knowing the different types of bankruptcy for individuals such as Chapter 7 and Chapter 13 can help you determine the best type of bankruptcy for your unique situation. Contacting a Plano Bankruptcy attorney can help answer these questions and more to get you back on financial solid ground.