Is bankruptcy the answer to financial hardship?
Bankruptcy is one answer. It is not the only one in 99% of the time. It should always be the last answer. Consult with a credit counselor or a trusted friend who is responsible with money. Often the best solution if done in time is to modify your lifestyle if possible to come within your means. Begin to slowly pay down the debt and stay in touch with your creditors to inform them that you are taking action.
I never tell any of my clients that bankruptcy is what they should do. I simply provide the consequences/benefits of a bankruptcy filing and discharge. From there, I let them make the ultimate decision whether or not to proceed. For some people, bankruptcy may seem to be the only option. This may be due to pending or anticipated litigation, a wage garnishment, a bank levy, a home foreclosure, or a car repossession.
The Bankruptcy Code is simply not the answer for every financial problem. This is particularly the case for those that make more than the average income in the state where the person would file for bankruptcy.
What bankruptcy does allow, for most people, is the ability to eliminate debt, and not have to pay it back. If you qualify for a simple Chapter 7 bankruptcy case, then this may be a wonderful opportunity. A person can also significantly benefit from bankruptcy in cases of car loans with ridiculously high interest rates, and second mortgages that are subject to elimination through a Chapter 13 or Chapter 11.
For more information on whether a bankruptcy could help you, contact the San Jose Bankruptcy Attorney at the Henshaw Law Offfice today at (408) 533-1075.
For most people the thought of bankruptcy is devastating enough having it become a reality is very painful and comes accompanied with an overwhelming sense of failure.
