Posted on March 12, 2019 in General Bankruptcy Topics

You certainly know that bankruptcy is an option for debt relief, and you may have even considered taking this step to find some breathing room in your financial struggles. What has held you back? Was it the stigma of filing for bankruptcy? Was it the hit on your credit score? Perhaps you simply didn't understand what bankruptcy could do for you.

Filing for bankruptcy is not always the answer to overwhelming debt. In many circumstances, you may have other options, including negotiating with your creditors. Trying every legitimate alternative first is often a wise course of action before diving into bankruptcy. However, there are some times when uptcy is appropriate.

Evaluating your circumstances

Your first step in making any decision about dealing with your debt is to learn as much as you can about your options. For example, bankruptcy offers several forms. With Chapter 7, a court-appointed trustee liquidates some of your assets and pays your creditors as much as possible. Chapter 13 allows you to create a repayment plan for a certain period with payments that fit your budget. Whatever debt remains at the end of these bankruptcies may be discharged.

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