Chapter 7 and Chapter 13 bankruptcy are both ways that an individual in debt can find relief. It can be scary to think about filing for bankruptcy, but the risk is sometimes necessary to give you a fresh start.
At first thought, you may think of bankruptcy as the "loser's" way out of debt; essentially giving up on your efforts to pay bills that will forever label you as a cheat or deadbeat. However, you may soon learn that millions of Americans seek bankruptcy protection every year, and they all have one thing in common: They want to leave their troubled financial pasts behind.
We represent many clients who are struggling with debt. Bankruptcy is often the best choice for them to get back on their feet financially and begin to save. A common worry people have when considering bankruptcy is their retirement. Fortunately, bankruptcy does not prevent you from ever retiring, and it can, in fact, help you be in a much better position for retirement than if you had never declared bankruptcy.
Many Americans struggle with their credit score. Late payments, a high debt-to-income ratio and defaults can lower a credit score for years.