Realizing you don’t have enough money to pay your bills regularly is disheartening. When this occurs regularly, coming up with a plan to address this issue is a priority. One of these options is bankruptcy, but some people might not take this option seriously because they’ve had some misinformation in the past.
It’s essential that you have accurate information so you can make the decision that’s best for you about whether to file for bankruptcy or not.
Some debts don’t qualify for bankruptcy
Some debts, such as child support and student loans, aren’t discharged in bankruptcy. Many tax debts are also immune from bankruptcy discharge. There’s a chance that some tax debts might qualify for a reduction, but it’s up to the agency holding the account.
Bankruptcy is often a responsible decision
People file for bankruptcy for a host of reasons. Some of these are beyond the filer’s control. Things like medical conditions that lead to high medical bills and becoming unemployed are common reasons for filing. Another common reason is divorce. In many cases, bankruptcy is the most responsible financial decision the person can make.
Recovery from bankruptcy is possible
It isn’t impossible to recover from bankruptcy, but it will take work to regain the creditworthiness that you might want. You can’t obtain new lines of credit while you’re in the midst of bankruptcy, but getting a secured card once the bankruptcy is discharged can help you rebuild your credit history.
Make sure you understand your responsibilities if you opt to file for bankruptcy. Working with someone who can help you through the process will likely reduce stress.