While it’s always best to try and pay off all debts before taking any drastic measures, there comes a time when some experts do recommend filing for bankruptcy. As financial guru Suze Orman has said, “Bankruptcy is the better option over burying your head in the sand.” If you really don’t have the money to pay your bills, it may be the right thing to do, even if our society is still “pretty judgmental” toward those who file.
Recent Times Made Filing for Bankruptcy Almost Mandatory for Some
Although a surprisingly large segment of America was barely affected during the recent recession – which should probably have been called a “depression” based solely on the extent of damage it did to people’s lives – a great many people lost all they had and are still jobless. In fact, “In 2008, bankruptcy filings jumped 32 percent to 1.1 million and in 2012 the filings jumped to 1.3 million.” Clearly, many hardworking Americans met with financial ruin to some degree. It was not until about June 2013 that bankruptcy courts finally saw filings dropping back down to “the early recession era at 1.1 million.” While a bankruptcy will stay on your credit report for a number of years, Suze Orman and other experts point out the plus side of filing when all of your financial resources have vanished.
What’s Beneficial about Filing for Bankruptcy?
- You can avoid having your creditors sue and possibly place liens on your home or garnish your wages;
- The bankruptcy court will allow you to keep certain exempt property – so that many personal items will remain yours, including a car of moderate value;
- Should you have any non-exempt assets, these can be sold – however, most people who qualify for a Chapter 7 bankruptcy usually have limited assets;
- Ever creditor ordered by the bankruptcy court to “wipe out” your debt must stop contacting you in any manner to collect it;
- You can start carefully choosing new credit opportunities to rebuild your credit. Buying a used car (or a reasonably priced new one) is one way of doing this – if you feel certain you can fully pay it off as required;
- The stress you’ve had to live with while dealing with all of the angry creditors will finally be alleviated to a very noticeable extent.
If you believe that you’re a victim of any abusive debt collection practices, contact the Law Offices of Georgia consumer protection attorney Shane Smith so that you can learn more about your rights under federal and state consumer protection statutes. Call (770) 487-8999 today to schedule your free initial consultation.