Managing your finances can be difficult and everyone is vulnerable to unexpected expenses. Maybe you suffered an accident and have piling medical bills or maybe you have too much credit card debt.
You might have heard filing for bankruptcy can help you out of your problems, but do you know what actually happens when you file? How can bankruptcy really help you with your financial troubles?
How can bankruptcy help?
Filing for bankruptcy can help you save your finances in a few ways:
- You will not need to pay most to all of your debt - This gives people a new financial start by "discharging" their debts.
- May stop your house from being foreclosed - This allows people to catch up on their payments, though it does not eliminate your mortgage.
- Discharge debts that occur after bankruptcy is filed - This also helps people get a fresh start.
What are the limitations?
Though bankruptcy can help solve some of your financial problems, it does not completely absolve all debt. There are a few types of debt and other finances that are not relieved after filing for bankruptcy. These include:
- Car loans
- Home mortgages
- Child support
- Student loans
- Criminal fines
Financial problems can put a lot of stress on you and your family, but there are ways to help. Review all your options before deciding to file for bankruptcy, to make sure it is your best option. Filing for bankruptcy can give you a fresh start and there is no shame in asking for help when you need it.