When an individual or a business is experiencing financial hardship, they may be overwhelmed and unsure of where to turn. One option that may at first seem daunting is bankruptcy. Bankruptcy has traditionally had a negative stigma but it may be the only way a debtor is able to clear their financial slate and start fresh. There are different types of bankruptcy that a debtor can consider depending on their situation.
Bankruptcy may be a good option for a homeowner who is facing foreclosure and would like to save their home. It is also an option that can allow businesses to take some time to restructure their finances while keeping their employees on the payroll and their doors open for business. If your bank account has been frozen, if you can no longer pay your mortgage, medical bills, or credit card bills, or your wages are garnished, it is definitely time to consult with your accountant and a bankruptcy attorney.
Another aspect of facing serious debt is frequently being contacted by debt collectors. This can be frustrating and nerve wracking for a person who can’t pay their bills. It is important to note that when you file for bankruptcy, an automatic stay will go into effect that puts a stop to any contact from debt collectors. This can come as a serious sigh of relief to those facing calls from debt collectors and allows you to take some time to regroup and figure out your next steps.
If you are facing overwhelming debt and know that you won’t be able to repay it, contact an experienced bankruptcy attorney who can guide you out of this difficult situation.