Today, more than ever, people are filing personal bankruptcy as a way of getting away from the burden of their debt. Statistics show that the number one reason people are filing for bankruptcy is the harassment and pressure from companies trying to recover their money. For some people, bankruptcy is the only realistic options amongst the debt solutions available. Say, for example, if you owe $60,000 and you will never make more then $1,000 in any given month, then bankruptcy is the only option. The biggest benefit of bankruptcy is that this approach provides immediate relief and puts an immediate stop to the harassment. In some cases, all of your unsecured debt is forgiven and you get a “clean slate”.
New laws were passed that make it considerably harder and less desirable to file for bankruptcy as a way out. With this in mind, even if you are able to file for bankruptcy, there is a good chance you will still have to pay some or all of your debts over a period of time. To determine what type of bankruptcy you may qualify for, Pacific Debt Inc. strongly encourages you to speak with an attorney in your state. Only a licensed attorney in your state can review what debt help and debt solutions are available to you through bankruptcy. Some attorneys may also offer other alternatives as well.
The negative aspect to consider with bankruptcy is the effect on one’s credit rating. The bottom line is that it will stay on your credit report for up to 10 years. In addition, you’ll pay immensely for those important purchases that you make later on in life. For example, if you want to purchase a house in the future, the interest rate will be much higher than for the average consumer who never has filed bankruptcy. In addition, bankruptcy may be taken into account when applying for a job, an insurance policy, applying for a car loan, filling out a renter’s application, etc. As you can see, bankruptcy isn’t as appealing as it may first appear, although in some circumstances it is the best if not only solution. Only a licensed attorney may provide debt help guidance as to whether bankruptcy is a suitable option for you.