There are times when debt is so overwhelming that dealing with creditors and negotiating settlements with debt collection agencies simply can’t take care of the problem. When that’s the case, bankruptcy filing may be an option to consider, since a bankruptcy discharge could potentially wipe out your debt.
Although filing for bankruptcy is a major step, it doesn’t have to be stigmatizing. The truth is, the U.S. Bankruptcy Code has been in place for well over 100 years, and is designed to help Americans gain a fresh start. In 1934, the Supreme Court wrote about the purpose of the bankruptcy law: “It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”
There are two types of bankruptcy that apply to consumers. Which would you like to learn about?
