By Joseph Devine –

The American economy has been largely built on a consumer population addicted to and reliant upon credit. Big ticket items like cars, appliances, furniture, and homes have been purchased on borrowed money for decades and it has gradually become the norm to overspend and to utilize the once sacrosanct credit cards for day to day purchases. This has spiraled outward for many people into an overall attitude toward and handling of money that has left them scrambling or unable to make ends meet. When financial obligations are greater than you can afford, it may be time to consider filing for bankruptcy protection under the chapter of the Bankruptcy Code suited to your debt and asset situation.

Making the decision to enter bankruptcy is difficult, primarily because there is a longstanding social disapproval of the practice. But as more individuals and businesses find themselves struggling to cope with unemployment, stagnant wages, and rising interest rates on mortgages, credit cards, and other financial instruments it is becoming an unspoken and necessary step for many. The matter is further complicated by intentional disinformation put forth by debt collectors and other entities and the presence of countless finance gurus and laypersons who offer their opinions unsolicited and sometimes with serious misunderstandings about the subject at hand.

Myths and Misery

While it is true that bankruptcy is not the best course of action for everyone, it is often the quickest and most substantial source of relief for a family or business saddled with a wholly unmanageable debt load. Financial stresses can lead to ill physical health and can compromise one’s emotional wellbeing, leading to the unintentional destruction of interpersonal and business relationships. Filing for bankruptcy can put all of your debts and any collection efforts on hold temporarily, and for many classes of debt it can excuse the debt altogether.

This can provide you with a window of time to recover and repair your financial situation so that you can conquer the debts that remain and avoid the errors that landed you in such a tough spot the first time around. You should remain aware of the following common misconceptions about bankruptcy so that they do not prevent you from gaining back your financial independence:

You will lose your ability to gain credit — though your credit score will suffer for several years, the erasure of debts from the books can still make you an appealing client for many credit card offers
Doctor and other medical bills cannot be discharged — although there are some kinds of debt that are not dischargeable, medical bills have no such security, generally speaking, and may be discharged
All of your belongings will be seized and sold — the federal and state bankruptcy laws provide generous exemptions that permit bankruptcy filers to retain many of their possessions, and in the vast majority of cases they are not forced to surrender anything

Knowledge is Power

Do not let an unscrupulous debt collector take advantage of you. To be sure that you have all the facts, contact the Arizona bankruptcy lawyers at the Harmon Law Office, L.L.C.

Joseph Devine

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