Are your financial problems more than you can handle right now? One way to deal with your overwhelming debts is by declaring personal bankruptcy. Filing for Charlotte bankruptcy is a difficult decision though, and we believe it should not be made without first conducting a detail research on bankruptcy and bankruptcy alternatives.
The article provided below is made available to us by our Charlotte bankruptcy attorney.
Why does Charlotte bankruptcy get you back on track?
Charlotte bankruptcy works to get you back on track because it may be the only option to solve the primary cause of your financial difficulties.
As a resident of Charlotte, North Carolina, you may have experienced a job loss, marriage breakdown, or medical problem. You relied on credit cards and bank loans to survive and meet your day to day expenses, when your income wasn’t enough to cover your costs.
Now you have more debt than you planned, and it’s debt that you can’t service.
In many cases Charlotte bankruptcy is the most effective, efficient way to get rid of debt.
You can apply for a debt consolidation loan, but debt consolidation does not reduce your debt by even one dollar. All you are doing is taking five loans of say, $10,000 each, and combining them into one $50,000 loan. Your total debt, both before and after getting the debt consolidation loan, is still $50,000.
Debt consolidation does not reduce your debt!
Compare that to personal bankruptcy. When you file for personal bankruptcy, your debts are discharged at the end of the process. You are therefore going from having $50,000 in total debts to having no debts at all!
There are two common types of personal bankruptcy. Straight bankruptcy, also known as Chapter 7, discharges your debts in a short period of time. However, if your income is above the limit set by the government, you will be required to file a Chapter 13 Wage Earner Plan where you make payments over a period of up to five years to repay some or all of your debts. You should consult Charlotte bankruptcy attorney to determine which type of personal bankruptcy is right for you.
In addition, personal bankruptcy can improve your credit rating after a period of time. Creditors will not be happy that their debts were written off in your bankruptcy, but now that your debts are paid off, you have no debts, so you are actually a good credit risk, because you are no longer burdened with debt.
Finally, personal bankruptcy works because it relieves the stress and embarrassment of your financial situation. Financial problems are overwhelming; bankruptcy gives you a fresh start. You no longer have creditors calling you at home and at work. You no longer get threats of lawsuits or wage garnishments. You can start sleeping at night, now that the stress is reduced. Your relationships improve because you are not arguing about money all the time.
Charlotte bankruptcy under either Chapter 7 or Chapter 13 works because it reduces stress and eliminates your debts.