Financial security is something many Americans seek. Many Americans find it hard to reach financial freedom and the feeling of complete security in their finances. In fact, the cost of modern-day living is so high, and the rate of unemployment has never been higher, leading to many Americans finding themselves in troublesome debt. Lenders supply those with a minimal income a lifeline, yet it is only temporary. The soaring interest rates mean anyone borrowing a loan can expect to pay hundreds of dollars’ worth of interest.
The endless cycle of borrowing combined with a low income will often lead many Americans to file for bankruptcy. There are on average 800,000 people that file for bankruptcy in the US every single year. Filing for bankruptcy is actually the first step many Americans take to find their financial freedom. There are cheap bankruptcy lawyers offer incredible support, both financially and emotionally. This post will explore the benefits of filing bankruptcy and how it is the first step towards feeling financially secure for the rest of their lives.
When Is It Time to File for Bankruptcy?
If you are struggling financially, you are not alone. Recent studies have shown that 80% of Americans are wrapped in the tight embrace of debt. The problem is that loans are so easily accessible, no matter what your income or credit history. These loans are often taken out to try and pay the bills and keep the fridge full at home. When these bills can’t be paid, and housing payments are missed, and there’s no way of catching up, bankruptcy becomes a viable option.
Bankruptcy is a federal program that helps Americans to eliminate their debt. To begin the process, someone struggling financially would have to file for Chapter 7 bankruptcy. Cheap bankruptcy lawyers ensure their costs don’t create more of a problem for their clients and make the whole process far more affordable.
What Is Chapter 7 Bankruptcy?
Filing for chapter 7 bankruptcy is the better option for most Americans. Some chose to file for chapter 13 as the process is much easier and often a lot cheaper. If you file for chapter 7 bankruptcy, a court will place an automatic freeze on all of your debts. That means that creditors can’t attempt to collect the payments from you. It does, however, mean that a trustee is instructed to gather and sell the non-exempt assets that you have and use the money collected to pay creditors.
What It Means for You
Filing for chapter 7 bankruptcy doesn’t mean your life is over. Instead, it is just beginning. Without the stress and pressure of financial problems, you have a clean slate to build your finances back up. If chapter 7 is not a possibility for you, a bankruptcy lawyer can work with you to find a suitable plan.
Whatever your financial difficulty, there is always someone who can help you with your situation. Financial security could potentially be just a few steps away if you were to make the first move.