Bankruptcy may sound like a dirty word, but it can mean a new beginning if it used correctly to settle debts or reoganize your finances. Both individuals and companies can file for bankruptcy, and understanding the differences can make it easier to know how to pursue it as a correction to dire financial straits.
It is widely known that many of our nation's citizens struggle daily with insurmountable debt. In most cases, these people did nothing wrong. Life circumstances and sometimes even bad luck may contribute to financial difficulties. They may have lost a job or had to shut down a struggling business. However, once debt occurs, we all know that the right help is critical to overcoming the hardships created by high amounts of debt.
Many people dread receiving their credit card bills each month for fear of the interest and various fees that they will have to pay. Accumulating debts on credit cards has become a common problem in the state of Pennsylvania, and it is not a good habit to have, since the interest can be a source of additional debt and higher payments.
You have heard of people declaring bankruptcy, and you think that may be your best course of action considering your outstanding debt, but you have never done it before. You're wondering what your options are and what types of bankruptcy -- called "chapters" -- people use the most.
If you are considering filing for bankruptcy, you may already know that there are two primary avenues: Chapter 7 and Chapter 13. While Chapter 7 discharges certain debts in full, Chapter 13 creates a repayment plan so that you can pay off your debts within a five-year window of time.
You're thinking of declaring bankruptcy. You have been dealing with debt for longer than you can remember, and it just keeps getting worse.
Living under the crushing weight of debt is an emotionally (and even physically) draining experience. And the more the debt grows, the harder it gets to escape it. Filing for bankruptcy protection is one way that many people struggling with debt get their financial houses back in order.
Credit cards can cause debt problems when people do not use them responsibly. This is especially true because the high interest rates can massively increase debt when it is not paid off on time. So, should you consider getting a new credit card if you just filed for bankruptcy?
You got your first foreclosure notice. It's a position you never wanted to be in, but there's just not enough money to pay the bills right now with your current debt load.
Making the decision to file for bankruptcy, either as an individual or as a business, is never an easy decision to make. Although it is never the first choice out of the many options one has when first encountering financial difficulties, it can allow people and commercial entities to win back their freedom by successfully paying off their debts.