Tuesday, June 19, 2012

Facing financial hardships? Bankruptcy is an option.

If you are facing financial hardships bankruptcy is an option.

King and King Bankruptcy Attorneys posted  on Tuesday, June 19, 2012

If you are currently facing some unexpected financial challenges that several months ago or maybe even a year ago you couldn’t see coming, don't automatically discount bankruptcy protection as a possible option for resolving your problems.

Atlanta residents who don't understand Chapter 7 or Chapter13 bankruptcy or who have never had to worry about finances often assume that only irresponsible people file for bankruptcy in Georgia. However, this is generally not the case.

Atlanta consumers file for bankruptcy protection for many reasons including the loss of a job, a recent divorce or an illness that has resulted in major medical expenses. To say that these individuals were irresponsible is heartless. People face life-changing events every day that they can't necessarily plan for.

Although some folks do try to take advantage of bankruptcy laws in order to discharge debt they simply don't want to repay, these laws were also enacted to help prevent this type of abuse. For example, those who file bankruptcy protection can certainly have some of their debts discharged, but there are other types of debt that consumers could still be responsible for, even after bankruptcy. Some types of debts that cannot be discharged include student loan debt, tax debt and alimony or child support payments.

Credit card debt may be discharged, but this does not mean that consumers are free to start charging numerous purchases on their credit cards before choosing to file for bankruptcy protection. This type of activity could be considered fraud and courts will not discharge this type of debt.

Even if consumers do understand that bankruptcy may be a great solution to their financial troubles, some still choose not to file bankruptcy because they are worried about ruining their credit. The truth is bankruptcy will affect your credit score, but this is not permanent. In many cases, folks are able to rebuild their credit so that they can borrow from lenders in the future.

Bankruptcy may not be a solution for every consumer who is experiencing financial problems. If you have questions about whether or not bankruptcy is right for you, you may want to consider seeking guidance from anattorney in order to make sure that you are making the right decision for you and your family.

Source: USA News & World Report, "5 Bankruptcy Myths Debunked," Susan Johnston, May 14, 2012