Helping With Your Financial Future

Why worry about the stigma of bankruptcy?

| Jun 30, 2021 | Uncategorized

California residents might not always find their financial situation to be favorable. Debts may pile up, creating a source of worry and stress. Creditors could harass debtors, and even those wishing to pay their obligations may lack the means to do so. Bankruptcy might be the appropriate option for many, but some could worry about the social stigma attached to the process.

Bankruptcy remains a legal solution to financial troubles

Filing for Chapter 7 or Chapter 13 does not reflect a means of cheating creditors out of money owed. Rather, such filings represent a legal process made available through the U.S. Constitution. Bankruptcy proceedings take place in federal court and remain an option for those eligible for the protections.

However, people might worry about what others may think of them if they file for bankruptcy protection. Family and friends could look down upon someone who seeks bankruptcy protection, but those persons’ opinions are irrelevant. Filing for bankruptcy represents a legal process intended to free someone from the unbearable anchor of excessive debt. The repercussions of remaining heavily indebted could be far worth than dealing with judgmental opinions.

Exploring options for bankruptcy

Debtors might seek either Chapter 7 liquidation bankruptcy or the Chapter 13 restructuring plan. Some may find Chapter 13 more palatable if they are capable of repaying some of their debts in a reasonable amount of time. Chapter 7 could be the option for those with no chance of paying off what they owe.

Not everyone feels comfortable walking away from obligations, but bankruptcy presents a chance at a new start and life after bankruptcy. The process also keeps creditors away since bankruptcy proceedings mandate an immediate collection action stay.

An attorney may explain how means testing and other bankruptcy requirements work. The attorney could also perform the necessary paperwork filings in the bankruptcy court.