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Is bankruptcy worth considering?

On Behalf of | Mar 5, 2021 | Bankruptcy Law |

Bankruptcy laws provide options for individuals to solve their problems with excessive debt. When financial obligations far exceed assets and earning potential, debtors might find themselves paying incredible sums of interest and never reducing the primary balance. Oklahoma residents might find debt collectors and lawsuit threats add even more stress. A better option may exist in the bankruptcy courts.

Debt and dealing with obligations responsibly

Filing for bankruptcy involves taking advantage of federal law written to help debtors and creditors arrive at a reasonable solution. Misconceptions may exist that someone filing for bankruptcy has “failed” in some way. Such assessments could be both unfair and highly inaccurate.

Different people may discover their debt situation grows out of control for reasons that have nothing to do with irresponsible behavior. Medical bills, for example, could cost hundreds of thousands of dollars. Small business owners may suffer tremendous losses only to discover insurance does not cover their claim. Extended unemployment does not free anyone from their monthly rent, food, or other expenses. Credit card balances could rise as a result.

The legal and financial disasters that might result from defaulting on debts might make things worse. Federal bankruptcy laws provide a way out for debtors who may have no other options available.

Bankruptcy and potential benefits

Some “hidden” benefits may exist when filing for bankruptcy. Perhaps the debtor may learn how to craft a better budget that cuts down on additional expenses. Requirements to file tax returns on time could lessen the chances of running into problems with the Internal Revenue Service. Someone filing for bankruptcy early in life might approach finances differently after the discharge.

Concrete benefits might be possible, such as the bankruptcy court preventing an eviction. Such protections could alleviate some stress a debtor feels.

The oft-repeated notion of a “fresh start” reflects another possible benefit. Starting over from a better financial situation may put someone on sounding fiscal footing from that point forward.

Bankruptcy law statutes could hold the solution for someone struggling with debts. An attorney may be able to help someone wondering about filing for bankruptcy.