Debt affects millions of Americans every single day. Currently, there’s about $4 trillion in personal debt on the books in the US. This averages out to about $11,800 per person. These statistics highlight the reason why so many Americans are turning towards bankruptcy for a solution.
Although bankruptcy should be avoided if possible, filing does offer a path out of debt for many Americans. About 600,000 individual bankruptcy cases were filed last year— and many of them resulted in a fresh start for those families that filed. You may find yourself in situations like these:
Small Business Owners Beat the Recession
Dawn owned a small business with her husband. Their company absorbed a large financial loss from the 2008 economic crisis. Their primary supplier refused to continue the working relationship because the couple continued to default on their payments. These financial issues began to seep into their personal lives as the couple reached their credit limit and fell behind on their mortgage payments. After discussing their story with a bankruptcy lawyer, the couple was able to eliminate some of their credit card debts. Despite their previous assumptions about the bankruptcy proceedings, the couple was also able to keep all of their property. They eventually caught up with their mortgage payments and business picked up. All they needed was the time that a bankruptcy filing afforded them.
A Couple Successfully Escapes Medical Debt
Over a three-year period, Evan and his wife incurred over $100,000 in credit card and medical debt for procedures that weren’t covered by their insurance company. The couple successfully filed for Chapter 7 bankruptcy with the help of a qualified attorney. Evan and his wife were able to settle with one creditor and use some of their state’s exemptions. It took a few years, but the couple eventually saw their entire credit card and medical debt paid off entirely without nasty calls from debt collectors.
John Survived Unemployment
Early in 2016, John was laid off from his work. Despite having many years of experience in the tech field, John was still struggling to find a job after 12 months of searching. During this time, he was forced to place necessities such as groceries and utilities on his credit cards. He eventually racked up a significant amount of debt and was on the verge of being sued. John was relieved to hear from his bankruptcy attorney that his situation wasn’t unique. There are thousands of other people who file for bankruptcy after losing their job. John ended up qualifying for Chapter 7 bankruptcy and some of his debts were reduced and consolidated in a payment plan that he could afford. Although this took a significant toll on his credit score, John is well on the way to financial health with a new job and a track record of on-time bill payments.
Filing for Bankruptcy Success- What’s Your Story?
Bankruptcy isn’t designed for individuals or families with a small amount of debt. In fact, a majority of people in the United States operate perfectly well with some debt. Bankruptcy is specifically designed for those unique situations where people have no other options or possibilities. Talk to a bankruptcy attorney if your bills are not being paid and debts are piling up. These professionals understand the system and can help find the best path out of debt.
Many people who find themselves in financial trouble aren’t considering all of the possible options. Bankruptcy isn’t a dead end or failure. Instead, think about it as a tool that allows families and individuals a path out of stress, fear and debt.
Find out more about Bankruptcy in our guide: All About Bankruptcy
Learn about the ways bankruptcy can help you. Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve. The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.