There is an understandable stigma associated with filing for bankruptcy. It has an effect on your credit that can last for up to a decade. Even after that decade has passed, when you apply for a loan or you engage in other financial activities, you may be asked if you’ve ever filed for bankruptcy. If you put no when the answer is yes, you could be prosecuted for fraud. That being said, there are a number of times when filing for bankruptcy is going to be in your best interests.
Contrary to what some may think, bankruptcy does not necessarily mean failure. Instead, for many bankruptcy means of second opportunity. Of course, it’s better to be able to pay off your debts as opposed to filing for bankruptcy. In most cases, your creditors would prefer negotiating with you as opposed to having you file for bankruptcy. When you’re able to negotiate with them, you may be able to have some of the interest or fees removed and this can help.
Some people have looked into filing bankruptcy Prince George’s County MD when they are facing a circumstance where their wages are already being garnished. In this circumstance, filing for bankruptcy might be able to stop the wage garnishment. It might even be able to help a person who has had their wages garnished to get some of the money they’ve lost back.
Others who have benefited from filing for bankruptcy are those who may have medical bills that are beyond their ability to repay. There is a reason why a large number of people who file for bankruptcy do so because of medical bills. Medical bills are expensive. And even people who have health insurance find themselves not being able to pay back all of their medical bills. Bankruptcy may be able to help a person get the relief they need by completely discharging those bills or coming up with a way for them to repay the money that they owe over a period of three or five years.
Bankruptcy could be a good option for individuals who do not have any assets and are worth less money than they owe out. Bankruptcy may be a viable option for individuals who do not have any savings and have no way to pay back their debt.