Bankruptcy is Not the End of the World

No family starts out intending to incur debt that they cannot repay. Unfortunately, families and other individuals often find themselves in that very situation. That situation leads them to try to find debt relief from various sources. One of the most popular ways of finding debt relief is bankruptcy. Bankruptcy is often sought as a last resort when there are no other means to get aid for overwhelming debt. Bankruptcy has suffered a bad rap, and many people are embarrassed to have to go that route. The good news is that bankruptcy is not the end of the world, nor does it have the stigma formerly associated with it.

Every state has its unique laws surrounding financial matters. For those filing bankruptcy, there are two types primarily used by individuals and families: Chapter 7 and Chapter 13. The former is a complete erasure of the eligible debts incurred, while the latter is merely a reorganization of the debts so they can be paid. In any case, neither form of bankruptcy can be filed until the debtor has received official credit counseling. This credit counseling must be an agency approved by the bankruptcy court.

In the state of Florida, the laws are in place to ensure that a debtor does not lose his home, automobile, and furniture. This is a myth that causes many to fear the filing of bankruptcy. Another myth that people should not worry about is that they might lose their pensions or IRAs if they file bankruptcy. Federal law and Florida law both protect the debtor from losing those items.

Other things that people might worry about are losing their jobs, being prevented from renting or buying a home, and having their credit ruined forever. All of these things are myths that have floated around for a long time. A person that wants to, or is thinking about, filing bankruptcy should realize it is not the end of the world. Instead, persons should seek a qualified attorney who can help them make the right choices for their situation. There is a bankruptcy lawyer in Bradenton who helps clients with issues relating to debt relief. Visit the website, www.1800debtrelief.com/bankruptcy-lawyer-bradenton, to get more information.