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Why bankruptcy is a viable option

| Jul 7, 2020 | Uncategorized

Many Florida residents will hesitate to declare bankruptcy due to the negative stigma involved. In many cases, however, a bankruptcy filing will make sense and be the best option for someone who wants a fresh financial start in life. In fact, they may start realizing the benefits of this filing within the first year.

What bankruptcy does is put a halt to the debt collections and gets filers out of debt. The laws provide for an automatic stay and then removal of debt. While there is definitely a very large short-term hit to the credit, one will see it start to recover after a year. In fact, when one files for bankruptcy, the damage is largely already done to the credit score because it comes after years of missed payments and a worsening credit situation.

Not only does bankruptcy ultimately help a credit score, but it can also lead to a new financial future. Many people struggle under the weight of medical bills and credit card debt. They may have lost a job or suffered some other financial setback that makes it harder to pay these debts. While not all types of debt can be discharged in bankruptcy, filing can actually make it easier for someone to gain access to credit in the future once the effects of the bankruptcy recede. They will not remain in the penalty box forever.

Those who find themselves struggling with high levels of debt should consult a bankruptcy attorney to find out how they can get relief. The attorney could advise them whether a bankruptcy filing makes sense for them and which type of bankruptcy they should declare. The attorney may then handle the paperwork and file it with the court to make the process easier for the client.

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