Far too many people try to claw their way out of debt when it’s unrealistic to do so. As a result, they end up wasting a lot of time and energy while spending years being stressed out about the financial burdens hanging over them. The good news is that if you’re in this position you might be able to obtain very real financial relief through the bankruptcy process. If you’re like most people, though, you might be worried about losing everything and being forced to start over from scratch after your bankruptcy.
Fortunately, this isn’t how bankruptcy plays out. To start, there is a whole host of bankruptcy exemptions that leave you with the resources you need to be stable post-bankruptcy. If those exemptions don’t go far enough in helping you keep key assets, like your car, then you can also consider a reaffirmation agreement.
Through a reaffirmation agreement, you agree to hold onto certain debt that would otherwise be discharged through bankruptcy, thereby allowing you to keep the asset that is backed by the debt. These agreements can be a great way to ensure that you’re able to get back up on your feet without slipping back into overwhelming debt. This is because you might be able to renegotiate the terms of your debt through a reaffirmation agreement, and bankruptcy frees up your resources to better ensure that you can pay off the reaffirmed debt. As a result, you can also start the process of rebuilding your credit score.
You shouldn’t force yourself to ruin your life by fighting to avoid bankruptcy. Don’t let the stigma that is often associated with bankruptcy get to you either. Instead, come up with a plan to secure the fresh financial start you deserve. Speaking with an experienced bankruptcy attorney might be the right first step.