It can be extremely difficult to manage overwhelming debt, and there may come a point where you realize that you can no longer handle your payments and obligations on your own. If you find yourself in a position where your debt burden is hindering your financial stability and your future interests, it may be worthwhile to consider the benefits of bankruptcy. This legal process offers you the opportunity to deal with certain types of balances once and for all.
Many Americans are struggling with their finances as a result of the pandemic. Many jobs changed, small businesses closed, and it may be a struggle for you to overcome some of the challenges you are currently facing. While bankruptcy may not be your first choice, there are many benefits to this process, including the ability to regain your financial stability and security.
Why choose this option?
Bankruptcy gives you the opportunity to start fresh by allowing you to deal with certain balances you may owe through repayment or discharge. The specific way that bankruptcy will improve your situation depends on the chapter of bankruptcy you choose, the types of debt you owe and other factors. Some of the immediate and short-term benefits of this process include:
- Stops harassing phone calls from debt collectors and creditors
- Ceases foreclosure, wage garnishment and other collection efforts
- Gives you an organized plan by which you can confront your debt problem
During the bankruptcy process, you will follow the steps outlined in the court-approved bankruptcy plan. Once it is complete, you will be left with much less debt and the ability to move forward. Other long-term benefits of bankruptcy include:
- Ability to repair and rebuild credit over time
- Fewer outstanding balances and less pressure from creditors
- Less stress from money-related issues
Bankruptcy offers many benefits, but that does not necessarily mean it is the best choice in every situation. A careful assessment of your current financial concerns and long-term goals can provide you the ability to determine what is best for your future.
Where should you start?
You may need the opportunity to start fresh after pandemic-related financial struggles. A Georgia bankruptcy attorney can help you understand why this could be a practical and prudent choice for your future interests. This is a time-sensitive matter, and you will benefit from knowing your options as soon as possible.