Bankruptcy is an unfortunate situation that many people are finding themselves in these days, With economic instability, crashing job markets, and social unrest, the pressures on individuals and families have never been more severe. When finances get out of hand and debt becomes too deep to dig out of, bankruptcy may be the best option.

Working With Legal Experts

Working with a bankruptcy attorney can help you sort through all the red tape and legal processes involved. It can also reveal some surprising facts about who is filing for bankruptcy today. It turns out that people younger than 25 made up less than 2%, and 20% of filers are 55 years or older, which puts the median age for bankruptcy filers at about 45 years old, according to The Balance. No matter what your age or situation may be, however, there are some key things everyone needs to know about filing for bankruptcy and meeting with a bankruptcy attorney. Bankruptcy can be the right choice if you have no better way to deal with your debts, as it opens many other doors for you.

What You Can Expect After Filing for Bankruptcy

Filing for bankruptcy can eliminate your obligations to pay most, or in some cases, all of your debts as a result of the bankruptcy filing. This benefit is commonly called a “discharge” and essentially wipes the debts off your records. It can also stop collectors from hounding you and pressuring you for payments. Foreclosures, tax sales, repossessions, and other creditor actions will be stopped either temporarily or permanently.

Bankrupcty gives you time to make back payments on debts secured by property, such as your home or vehicle, that you wish to keep. Bankruptcy does not, however, remove the debt, but will give you time to renegotiate payments. Working with a bankruptcy attorney and winning your case can also help stop debt collection harassment. It may also protect you from further wage garnishment, and similar attempts to collect on your debts.

Lowering the amount you are required to pay each month on some debts is also a benefit of bankruptcy. This can also apply to some of the most common secured debts, such as car loans and other major loans that you may have in your name. Bankruptcy also helps to prevent the termination of utility services, such as power and water, due to non-payment or missed payment on monthly bills. A bankruptcy ruling can also help to restore service if it has already been terminated. It allows you time to challenge certain debts and repayment terms that may be unfair or incorrect. It also gives you the opportunity to work with a bankruptcy attorney to further check your available options.

Final Considerations

Bankruptcy cannot magically remove every financial problem. It is far from a cure-all, and it is not the right step for every individual. Speaking with a bankruptcy attorney at Hedke John F Law Office can help you understand your options and make the decision that is right for you!