Bankruptcy means a lot of different things to a lot of different people. For businesses, bankruptcy is often used as a reorganization tool that allows the company to pick up the pieces and move forward in a better manner. For individuals, bankruptcy is a way to legally eliminate or reduce debt that has become beyond their ability to pay. However, some individuals fear that filing bankruptcy will make them look like they are “using the system” or “trying to stiff creditors”. Some credit repair companies advertise that bankruptcy should be avoided. Some financial “experts” claim that bankruptcy is the worst possible thing a person can do to eliminate debt. The real question is this: Is bankruptcy a good idea for you in your situation?
Bankruptcy may not be right for everyone. For example, you can try negotiating settlements with your creditors, you could attempt to qualify for a consolidation loan, or you could just stick your head in the sand and hope that it all goes away. But in many cases, bankruptcy can significantly help you to reduce or eliminate your existing debt. It can also help you rebuild your credit and future financial security. After filing bankruptcy, you may have access to new lines of credit that you didn’t have before bankruptcy. That car loan may no longer be out of reach. You can start immediately rebuilding your credit so that you can purchase a home or refinance your existing home in the future. Retirement account contributions might be a possibility now that you have a positive cash flow. Almost without exception, your stress level will significantly decrease.
So, are there alternatives to bankruptcy? Yes. But if you are struggling with debt, it would be worth your time to speak with a knowledgeable bankruptcy attorney and find out more about your options.
Call Mountain View Law Group today at 801-393-5555 for a free initial consultation regarding options for managing your financial situation.