There are various ways to erase debt, whether through bankruptcy or through careful planning and budgeting.
Whether through the asset liquidation process of Chapter 7 bankruptcy or the reorganization and debt repayment of Chapter 13 bankruptcy, bankruptcy is a way to eliminate debt. It can be a lengthy process, but one that many have found rewarding over time, as they emerge without the debt that was overwhelming them. After bankruptcy, the financial fresh start helps people to regain a firm footing, free from debt.
You may be able to learn more about erasing debt via bankruptcy from one of our sponsoring bankruptcy attorneys. An attorney can explain what it takes to file for bankruptcy, and the steps of the process. To get in touch with a local bankruptcy lawyer, simply fill out the free case evaluation form below.
The Bankruptcy Debt Discharge
One way that bankruptcy can erase some debts is through the bankruptcy debt discharge. The debt discharge comes in Chapter 7 bankruptcy, when unsecured debts may be discharged, and the bankruptcy filer doesn't have to pay them off anymore. Unsecured debts are those that are given out based only on the borrower's ability to repay them. The primary type of unsecured debt is credit card debt, and the credit card debt discharge is one of the most often mentioned benefit of Chapter 7 bankruptcy.
Stay Out of Debt
Planning, budgeting and building credit are some of the center pieces of effective money management. Many find that, even after exiting bankruptcy, they must focus on these valuable lessons so that they don't repeat the same habits that resulted in debt problems in the past.
First, controlling spending is important, including making sure that the money coming in exceeds the money going out. This basic principle is easier said than done, but building up savings is an important foundation of debt-free life.
Putting together a budget is the best way to make sure that the books balance out. A budget can be a good way to ensure that you are spending money on the highest priority items and services, rather than losing track of where the money is going. Intelligent decisions most often come from devising and following a good plan and a good budget.
A Bankruptcy Lawyer Might Be Able to Help
If you are considering bankruptcy as a way to erase debt, you might want to consult a legal professional. One of our sponsoring bankruptcy lawyers may be able to answer your questions about bankruptcy and debt. Simply fill out the free case evaluation form below to find help today.