If you are facing financial hardships bankruptcy is an option.
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
http://money.usnews.com/money/personal-finance/articles/2012/05/14/5-bankruptcy-myths-debunked