Does Bankruptcy Solve Financial Problems?
Posted on Monday, December 9th, 2013
You may have heard someone say that bankruptcy does not solve your financial problems. This can be true if you fall right back into dangerous spending habits. However, if you are looking for a way to discharge impossible debts or re-structure debt and arrange sensible monthly payments, and make a fresh financial start, there is little that can match a bankruptcy for settlement of your financial obligations.
Essentially, bankruptcy does what it was designed to do. Expecting a bankruptcy to solve all your financial difficulties is not realistic, but it is also not realistic to toss out the idea of bankruptcy if it can work for you. In order to make a good decision about whether or not to file bankruptcy, you must learn what this process entails and how it can help you. The attorneys at the Amerio Law Firm can help you understand bankruptcy’s scope and how it can help you solve financial problems.
What Bankruptcy Does and Does Not Do
The the primary purposes of bankruptcy is to discharge debt, or restructure debt. Bankruptcy is the legal way to avoid paying insurmountable sums to creditors, especially for unsecured debts such as credit cards or medical bills.
Bankruptcy does not discharge all debts. For example, student loans and child support are not dischargeable under bankruptcy. However, discharging your unsecured debts (including taxes in certain situations) may make you better able to pay for your non-dischargeable financial other obligations.
What bankruptcy does not do is give you a clean slate to go out and run up new debt. If you file bankruptcy, you must be prepared to make some changes in your lifestyle, especially if you are used to living by your credit cards. Re-building your credit post-bankruptcy is an achievable goal. The careful use of secured credit cards and other forms of guaranteed spending can help you rebuild your credit.
Is Bankruptcy Right for Me?
Bankruptcy was designed for people who have little other option, not as an “easy” way to avoid paying bills. However, if you have suffered an illness, job loss or other financial disaster and need the help of bankruptcy law, there is no shame in utilizing this federal right.
The attorneys at the Amerio Law Firm can help you decide if bankruptcy is the best way to discharge your debts or re-structure your debt and solve your financial problems.