Bankruptcy can affect almost anyone. Hundreds of thousands of Americans turn to federal bankruptcy protection laws each year. In 2023 alone, nearly half a million Americans 鈥斅犅犫 resorted to bankruptcy for their businesses or personal finances.
Delaying a bankruptcy filing can be common. People sometimes wait until they've exhausted a significant portion of their financial resources before resorting to legal advice.
With the risk of falling behind in payments, those in debt may feel overwhelmed. Even though filing for bankruptcy may seem drastic, exploring every option available to you is important.
Stone Rose Law Firm's bankruptcy attorneys in 蜜柚直播 specialize in helping clients evaluate whether bankruptcy is a financially suitable option for their personal situation or business.
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Each client Stone Rose Law helps is unique, as everyone's considerations surrounding bankruptcy aren't the same. However, they have learned from years of experience that some client concerns occur more often than others.
There are many aspects that Stone Rose Law considers when helping clients make an informed decision when they ask the firm whether bankruptcy is the right decision for them.
Talking about filing for bankruptcy can be emotionally challenging due to the stigma attached to it. However, making financial decisions based on a realistic assessment of your situation is crucial. It's important to note that bankruptcy is a legal tool individuals and businesses use to manage overwhelming debt. Many prominent figures, including politicians, celebrities, and even financial professionals, have required bankruptcy protection, demonstrating that this route is an economic strategy, not a personal failure. Many people who command great respect and even admiration in society have survived bankruptcy without losing either.聽
And you can survive it, too.
Bankruptcy Alternatives
Bankruptcy is a serious decision that can have long-lasting effects for up to a decade, so it is always a good idea to consider alternative options, even if you are sure.
Negotiate With Your Creditors
One misconception is that creditors will not provide a constructive response if reached out to by people who begin to struggle to pay them.聽
One thing to remember about lenders is that they, too, would prefer a better outcome than the people they lend to declaring bankruptcy, so they are often willing to consider other payment arrangements.聽
In addition, as most people in debt do not attempt to work with their creditors, if you do, this usually comes as a pleasant surprise to the lender and can make it more likely that they want to work with you, too.聽Negotiating with lenders may not always result in them cutting you some slack, but it is often worthwhile. Many lenders are willing to explore alternative payment options to avoid bankruptcy proceedings.
The Pros and Cons of Filing for Bankruptcy
While considering alternatives to bankruptcy, it is also wise to consider your reasons for choosing this path.
What Would Be Your Objective Filing for Bankruptcy?
Federal bankruptcy law makes seven kinds of bankruptcy protection available for businesses and individuals. Not all types of bankruptcy are available鈥攊t will depend on a case-by-case basis鈥攁nd in some situations, you might need to decide between different options.
Before filing for bankruptcy, it鈥檚 important to know what you want the outcome to be.聽
Those looking to repay a portion of their debts through a court-ordered repayment plan often consider Chapter 13 bankruptcy. On the other hand, Chapter 7 bankruptcy provides the complete forgiveness of debt for a fresh financial start.
To determine the most suitable course of action, evaluating your long-term financial goals and business plans for the next decade is crucial. These factors will influence the potential impact of bankruptcy on your future.
The bankruptcy lawyers at Stone Rose Law can help you thoroughly evaluate your options, beginning with whether to consider other options first or the pros and cons of each kind of bankruptcy that may be available to you.聽
Bankruptcy Advantages
The main advantage of bankruptcy is that it can either make it easier to pay back your creditors through a payment plan or, in some cases, you can eliminate many kinds of debt, giving you a "fresh start."聽
Facing a mounting number of past-due debts can lead to collection activities, repossession of assets, or even foreclosure. Chapter 13 bankruptcy offers a court-ordered repayment plan as an alternative to these consequences.
For struggling businesses, Chapter 11 bankruptcy can provide a path towards reorganization and potentially allow them to remain operational.
Bankruptcy Disadvantages
Bankruptcy can be a valuable tool to help you get your financial life back on track. But it is not a perfect solution to budgeting difficulties. Bankruptcy offers some powerful benefits, but they can come at a price:
- Bankruptcy itself can cost you money and property. The costs of filing for bankruptcy protection are something to consider when deciding whether to proceed. Another related consideration is that you might also lose property not protected by the individual homestead exemption or if they are subject to legally secured creditor claims.
- You may still owe money even after bankruptcy.聽Even a complete bankruptcy, like a Chapter 7 bankruptcy for individuals, does not eliminate all kinds of debts. Some obligations, like taxes, spousal, child support, and amounts owed based on legal judgment awards, survive bankruptcy.
- Your credit record will suffer for years. Depending on the kind of bankruptcy chapter you choose, bankruptcy will stay on your record for at least seven to ten years.
- You will have a harder time engaging in certain transactions. Many companies will check your credit report and might decline to do business with you if they see you previously filed for bankruptcy. For example, buying a car, renting an apartment, or obtaining a mortgage could be more challenging.
Do You Need Help Deciding if Bankruptcy Is Right for You?
This article aims to provide information that may be helpful if you are wondering whether bankruptcy is available for you, so ask yourself whether you are being harassed by calls from creditors, wondering how to keep your home out of foreclosure, or facing wage garnishments to pay debts. If so, call聽聽at 480.498.8998, as they can help you understand your options, and if you elect a form of bankruptcy protection, they can help you file for it.
They can also stop the harassing phone calls and letters from your creditors.聽
If you prefer to communicate online instead, contact one of Stone Rose Law's 蜜柚直播 bankruptcy specialists via their website.
The worst part of facing financial hardship is the uncertainty that can come from it. Letting experienced bankruptcy lawyers, like the ones available through Stone Rose Law, lift that cloud of uncertainty that鈥檚 been hanging above you will help you see the best path forward.
