Debt can be a crippling burden. It seems to grow slowly and inexorably, and then suddenly it has grown too large to be dealt with. Debt collectors become a constant presence, unceasingly asking for and taking the money that the debtor can’t afford to pay. In these cases, when it seems that the debt will never go away, bankruptcy can be a viable option.
Bankruptcy has a stigma for being a sign of giving up and for haunting a person’s credit score for the rest of his or her life. However, this is simply not the case. Bankruptcy is perfect for debtors who have no other alternatives for escaping their debts, and who are simply unable to pay them off. If a person can prove that paying back a debt would be impossible without sacrificing living necessities, then a bankruptcy court will forgive those debts.
When a person applies for a straight bankruptcy to have the debts completely cleared, they are usually applying for a chapter 7 bankruptcy. In these cases, all of the debtor’s possessions are taken into account, and if any are deemed to be extraneous or unnecessary, they are seized. The value of these extra possessions is used to pay back as much debt as possible, and the rest of the debt is cleared.
If you are suffering from debt and are worried about bankruptcy affecting your credit score, then consider this: the longer you remain in debt, the worse your credit score will be. While a bankruptcy may remain on your credit history for up to ten years, many investors and financial institutions will recognize the wisdom in filing for bankruptcy. To learn more about bankruptcy and getting out of debt, contact a College Station bankruptcy attorney.