By the time the majority of people consult a bankruptcy attorney to discuss their personal bankruptcy options, they have already investigated some debt-relief options on their own. If they haven't experienced foreclosure on their home or repossession of their vehicle, they have undoubtedly been contacted by creditors or collection agencies. Perhaps they attempted to negotiate, began making payments, and then fell behind. By the time they consult with a bankruptcy attorney and become aware of the legal and available options for debt relief, they also experience a tremendous mental relief.
When most people hear the word ""bankruptcy,"" they envision a significant debt discharge known as """"filing a Chapter 7 bankruptcy."" In Chapter 13 bankruptcy, it is also possible to restructure and repay debts over a three- to five-year period. Not all debt is """"dischargeable"""" through bankruptcy (child support, certain back taxes, and student loans are common exceptions), but it is a great relief for them to know that there is a well-trodden path to regaining financial control.
Moreover, the overwhelming majority of individuals who file for bankruptcy are not attempting to exploit a legal loophole or avoid paying their debts. For the most part, falling into overwhelming debt is unanticipated and viewed as a financial calamity. However, there is a small subset of individuals who may anticipate filing for bankruptcy in advance. Certainly, if you had known you would be involved in a car accident, robbed, slide on a crack in the sidewalk, and suffer a nasty fall, you would not have chosen that path at that time. Obviously, never - humans avoid loss and its associated suffering. For the majority of us, losses are unanticipated, particularly when we have planned for success.
Consider for a moment: if you've ever lost a job, didn't get the pay raise, didn't cash in on the sale of your house or your assets, or... whatever the specific expectation, did you anticipate it? Not if you viewed the world through the rose-colored lenses of optimism; not if you believed that profits would continue to rise into the foreseeable future without a single black cloud in the opportunity sky. Now that you look back, is it not simple to see that those ""bad days"" were not entirely unexpected?
So the economic downturn was entirely unexpected? And the occurrence of illness, injury, weather change, property damage or loss, and objects wearing out, including your body and clothing, were not anticipated at all? Obviously, some (hopefully not all) of these things occurred and altered your plans. You were forced to abandon Plan A for your life and adopt Plan B in order to be realistic and adapt to unforeseen circumstances.
You have reached a point where you must decide which form of bankruptcy relief is appropriate for your situation because your debts have become overwhelming and your previous attempts to alleviate your financial difficulties have failed. In cases of personal bankruptcy, there are two options: Chapter 7 Bankruptcy (elimination of all or the majority of debt) or Chapter 13 Bankruptcy (structure of an affordable repayment plan over 3 to 5 years).
Now that you are prepared for what is to come, you are prepared for the next step.""
" - https://www.affordablecebu.com/