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When is Personal Bankruptcy the Right Decision?

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Many individuals who are struggling with debt know that bankruptcy may be an option for them, but they worry and wonder: when is personal bankruptcy the right decision to make? According to a recent article in The New York Times discusses how there is still an assumed stigma around filing for personal bankruptcy, but in fact more people should consider it because “it can provide much-needed relief.” Indeed, many people who feel unsure about filing due to stigma often regret that they did not file sooner. As the article underscores, “many people avoid filing for filing for bankruptcy out of shame and embarrassment around their financial circumstances because they receive poor advice or they are too proud,” yet for most of those individuals, filing for bankruptcy is “a prudent option to eliminate burdensome debt, save a home from foreclosure, and end collection calls.”

How can you know if personal bankruptcy is the right decision for you? Consider the following information from our West Palm Beach bankruptcy lawyers.

Do You Have More Debt Than You Can Repay? 

Whether you are dealing with a range of credit card and medical bill accounts, or you have consolidated your debt in an attempt to get back on track but cannot afford the payments in a way that can allow you to pay down the principal, it may be the right time to discuss the possibility of bankruptcy with a lawyer. Even though bankruptcy does affect your credit score and affect your ability to obtain credit in the near future, bankruptcy can offer a crucial fresh start to struggling consumers.

It is critical for anyone in this position to know that there are many myths about bankruptcy that feed into the stigma, and it is important to know that those myths are not fact. For example, bankruptcy will not affect your financial circumstances forever, you can qualify for lines of credit and a mortgage and more after bankruptcy, and bankruptcy is not the fault of the debtor.

Are Your Debts Dischargeable? 

If you find yourself in the above situation, bankruptcy may be about to benefit you immensely. Yet before you decide to file, it is important to determine whether your debts are dischargeable. Many types of consumer debts can be discharged, including credit card debt, personal loan debt, medical debt, and even student loan debt for a wide range of debtors.

Are You At Risk of Foreclosure? 

If you are facing the possibility of foreclosure, filing for Chapter 13 bankruptcy may be the best option for saving your home and catching up on payments with your mortgage servicer. This is one of the distinct features of Chapter 13 bankruptcy, and homeowners can use it to their benefit.

Contact Our West Palm Beach Bankruptcy Attorneys Today 

If you have questions about personal bankruptcy, or if you want to begin taking steps to file for bankruptcy, it is important to seek advice from an attorney who can assist you. An experienced West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller can speak with you today. We can answer any questions you have, and we can begin working with you on your bankruptcy filing as soon as you are ready. Contact us for more information.

Source:

nytimes.com/2024/11/09/business/bankruptcy-debt-chapter-7.html

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