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When Bankruptcy Is the Right Option

Certain types of financial problems can be remedied relatively easily. With a little smart budgeting and a dose of luck, you pay off the debt, and the thought of consumer bankruptcy never crosses your mind.

Most Americans are just a few bad breaks away from having to consider serious debt relief options.

Bankruptcy is a powerful process and a saving grace for families who find themselves unable to reverse a downward spiral that may have started with a single setback. Millions of Americans have firsthand experience with the Chapter 7 and Chapter 13 bankruptcy processes, and have emerged in a better position to prosper going forward.

In 2010 alone, as many as 1.6 million bankruptcy filings are expected across the United States, the largest figure since Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. - You have begun to rely on credit cards to meet basic expenses such as food, clothing, medicine and rent.

An experienced bankruptcy lawyer can quickly assess your financial situation and give you clear advice about whether you should seriously consider bankruptcy. Depending on your individual circumstances, you may be eligible for a Chapter 7 bankruptcy, which eliminates most debts (student loans and child support obligations are exceptions) after requiring you to liquidate certain assets. At the same time, bankruptcy provides an automatic stay that halts collection efforts while your overall credit situation is resolved. The bottom line knowledge is power. By discussing your situation with a law firm that understands your full range of debt relief options, you can gain an immediate advantage over the fear and uncertainty of a future of unending debt.

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