Your finances can get out of control for many reasons. You can lose a job, have too many unexpected expenses, or have your housing expenses go up. It is easy to get into debt and very hard to get out it. If you are in a situation where you your debts are more than your assets and you can’t keep up with your debts anymore, then you might want to consider filing for bankruptcy.
Bankruptcy allows you to erase your debts so you can get back on your feet again. Bankruptcy can be a valuable financial tool that can give you room to breathe and allow you to be free of your debts. You don’t have to worry about creditors suing you and you won’t be hounded to pay bills that you just can’t pay anymore. Once you file the bankruptcy paperwork, your creditors must stop their collection efforts and you can start to put the pressure and stress of not being able to pay your bills behind you.
You should only use bankruptcy as a last resort as it goes on your credit report for 10 years and your credit score is going to be brought down even further. You are going to have a hard or impossible time getting a loan, buying a car, or buying a home with the bankruptcy on your record. However, if you are deep in debt with no way out, filing for bankruptcy could be your best option.
It can be difficult navigating the bankruptcy courts on your own, so you should get the help of an attorney so you can have peace of mind that the bankruptcy is done the right way and that it is also done in your favor. Making mistakes could be costly in the end.