Recently, the Huffington Post had an excellent column about how people who file for bankruptcy are financially smart in discharging debt.
The piece was written by Steve Rhode, the site’s “Get Out of Debt Guy.” According to his column, Rhode tells people who are filing for bankruptcy “congratulations” because he says that they may do better financially when they are ready to retire than people who do not.
“Putting off dealing with your debt can cost you the very money you will need to retire and be able to afford to eat and live even just a moderate life,” Rhode argues, saying it is better to discharge tremendous debt now than it is to wait for it to slowly go away through payments.
Through a Chapter 7 bankruptcy, you can discharge credit card debt, medical bills and other forms of unsecured debt. This process can help someone struggling with huge monthly payments escape debt traps and save money over time.
In order to qualify for Chapter 7 bankruptcy, you have to pass what is known as the means test, which is a calculation of your average gross income over the six-month period prior to your bankruptcy filing. Individuals who do not qualify for Chapter 7 bankruptcy may be able to file for Chapter 13 bankruptcy, entering into a debt repayment plan that can also help them save money over time.
Rhode said that although bankruptcy may seem intimidating, it is often the best step for people with debt.
“[Bankruptcy is] a scary word these days, but the truth is it is meant to provide some protection, and a way forward, for people who are unable to pay their debts,” Rhode says. “Speaking with a lawyer or financial planner can be helpful, but if you find yourself in over your head, filing bankruptcy may be your only option.”
Speak to Our Lewisville Bankruptcy Attorneys About Eliminating Your Debt
As we noted above, bankruptcy can eliminate or greatly reduce the debt that you have accumulated over time. For some people, a personal bankruptcy filing is a great way to eliminate financial burdens that may damage them later in life.
If you are thinking about filing for bankruptcy and your debts are overwhelming, you will want to make sure that you receive expert guidance, as it will help reduce errors that may be made that could result in your case being thrown out of court. Speak to our Lewisville bankruptcy lawyers about how we can help you start your life over financially.
Julian, Crowder & Shuster, P.C. – Lewisville Bankruptcy Attorneys