Almost everyone has financial troubles at times, but some people experience financial problems on a regular basis. Constant financial problems can lead to serious health conditions if they aren’t properly resolved in a reasonable period of time. If you are in a situation where you’re overwhelmed by your financial responsibilities and you feel as if there’s no way out of your current situation, bankruptcy may be a way out. Many people view bankruptcy in a negative manner, but in reality, it’s a smart way out. Keep in mind above all to always consult a bankruptcy attorney. Not only will you be doing yourself and your health a favor, but you will be able to wipe the slate clean and start all over again, depending on the type of bankruptcy that you choose.
A Chapter 7 bankruptcy will enable you to have all of your unsecured debt discharged and you will no longer owe the mountain of bills that have accumulated. This option is available to those in a certain income range and who really have no way in which to repay their obligations, like those at or above certain income levels will not be allowed to file a Chapter 7.
For those who would like to attempt to pay their creditors but have no idea where to start, a Chapter 13 bankruptcy may be a more appropriate option. With a Chapter 13, a trustee will be assigned to your case and you will send in a lump sum of money each month which the trustee will distribute evenly among all your creditors. This will happen until you have paid off all your debt and you will no longer be in bankruptcy status.
There is also a new option, a Chapter 20 bankruptcy, which is a combination of both original types of bankruptcies. You will first file Chapter 7 which will free you of all unsecured debt and then you will file a Chapter 13 to handle the debt that can’t be dissolved in a Chapter 7 bankruptcy.
So if you’re ready to stop the annoying bill collectors from harassing you then you can contact a Bankruptcy attorney of your choice to assist you in the entire process so you will be on your way to starting a new life free from the constant worry about debt.