Financial troubles can be challenging to deal with. Most people want to pay their debts and live a comfortable life, so the realization that those aren’t possible can be difficult. For some people, life’s circumstances have made it impossible to catch up.
When there are more bills than money, one option that’s possible is filing for bankruptcy. This is a legally allowable way to reclaim financial stability. In a Chapter 7 bankruptcy, non-exempt assets can be liquidated to cover as much of the debt as possible. The bankruptcy trustee has to determine if doing that is viable enough to do it. In a Chapter 13 bankruptcy, the person makes regular payments to the bankruptcy court to pay off the debt. In both cases, any balances left on debts included in the case at the end of the bankruptcy are removed.
Emotions can vary throughout the process
Many people are relieved that they won’t have to deal with creditor harassment, but they may also feel embarrassed about having to take this avenue for dealing with their debts. Social stigmas are sometimes at the forefront of the individual’s mind. It may help them to realize that there isn’t anything wrong with filing for bankruptcy. The criteria and process are built into law to help people who need to reclaim their financial stability.
Some people may be stressed out because they don’t know what to expect during the process. It may help them to work with someone who’s familiar with these matters so they have guidance throughout the bankruptcy and can ensure they meet their obligations.