When it comes to their finances, many Americans are barely keeping their heads above water and are just one car repair, broken bone or another major cost away from economic ruin. Debt can just keep piling up, and before a person knows it, they in too deep and filing for bankruptcy is the only way to get out rid of your debts and get back on better financial footing.
What Are Your Debts?
A little debt is always good for your credit rating, but sometimes we over-leverage our credit or unintentionally accumulate more debt than we can handle. It’s easy to get into debt that soon becomes overwhelming. So, what causes most debt in the U.S?
The Top Six Causes of Debt in U.S.:
1) Medical-related expenses
2) Reduced income
4) Credit card debt
6) Unexpected expenses such as a car repair or major home repair.
Above is just a list of the most common reasons you can find yourself in debt. You can get relief from other debts, not on the list. You should speak with a bankruptcy specialist to see if you qualify for Chapter 7, Chapter 11, or Chapter 13 bankruptcy?
How Can Bankruptcy Help?
There are some ways bankruptcy can help you get out of a bad financial situation. When you file for personal or business bankruptcy, collections will stop, immediately! Creditors cannot call and harass you about your debt. Another
Depending on which bankruptcy structure you choose, some of your debts will be discharged, or the amount you owe will be significantly reduced. In most cases, you must pay something toward your debts, either through liquidation or restructuring before any of them can be discharged. Whey your debts are discharged, the lender cannot pursue any future collection activities, and your balances are zeroed out.
Some of the debts you can have discharged include:
Accounts sent to collection agencies
Balances on car loans after car repossession
Credit card debt
Mortgage loans in arrears
Past due rent and utilities
There are other debts not on the list above that can be discharged through Chapter 7, Chapter 11, or Chapter 13 bankruptcy. However, there are some debts such as child support, back taxes, and student loans cannot be discharged in bankruptcy except in exceptional circumstances. To find out other benefits for bankruptcy, USAttorneys.com recommends you speak to a bankruptcy attorney in New Mexico to learn about the debts that cannot be discharged on bankruptcy.
Consult with a bankruptcy lawyer in New Mexico to see if a debt relief structure is a solution to your problems. You don’t have struggle with your out of control debt alone. Call and set up a consultation with one of our top-notch attorneys. They will show you how to make the best of your bankruptcy and emerge with a clean slate.