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 and systematically eliminate or reduce debt that has become beyond the individuals’ ability to pay. However, some individuals fear that filing bankruptcy will make them look like they are simply “using the system” or “trying to stiff creditors”. Some credit repair companies advertise that bankruptcy should be avoided and their services should be used instead. 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?
Sure, there are alternatives to filing for bankruptcy: for example, you can try to negotiate 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 not only eliminate your existing debt, but 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 having your existing debts discharged in bankruptcy. You also may be able to afford that car loan that was out of reach before bankruptcy. You can start immediately rebuilding your credit so that you can purchase a home or refinance your existing home in the future. You may also be able to start contributing to that retirement account at work. Almost without exception, your stress level will significantly decrease.
So, are there alternatives to bankruptcy? Sure. 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 what bankruptcy could do for you as one of your options.
Call me, Kimberly Stevens, a Bankruptcy Attorney with Mountain View Law Group, today at 801-393-5555 for a free initial consultation regarding bankruptcy options.