We've all heard comments that bankruptcy is bad and that it can ruin your life. This is merely a false negative stigma that has come about through the years. The truth is everyone deals with financial issues at some point in their lives and not everyone is fortunate enough to get out of it quickly and without some help.
Many people may not realize that bankruptcy is a specific procedure codified in the law that affords individuals a new start financially. There are legitimate reasons why lawmakers put this mechanism into place. Simply put, people can make mistakes or find themselves in unexpected financial difficulties, and sometimes people need to start over. Bankruptcy allows you to deal with your financial stress all at one time instead of trying to deal with it piecemeal.
Whether you are eligible for a Chapter 7 or Chapter 13 bankruptcy either can help you to get back on the right track.
Chapter 7 bankruptcies will allow for quicker relief from your debt, but not everyone is eligible for it. Chapter 13 bankruptcies will put you in a payment plan to repay your debts, but it may take a few years.
In the end though, you can have the realization that you have conquered your debt and put it all behind you. You will indeed have a fresh start. The important thing to keep in mind is the end goal, which is to get back on your feet and to keep your financial stress to a minimum. While there are some consequences of filing for bankruptcy protection, many people will find that the pros outweigh the cons and benefit from pursuing this lawful method of handling unmanageable debt.
For more information on the bankruptcy process and how it can help you, it would be worthwhile to read the bankruptcy portion of our website and consider speaking with an experienced bankruptcy attorney in the Cincinnati area.