Most debtors see paying off debts as a moral duty compared to filing for bankruptcy. When you contact a financial professional, they do cover the aspects of spending within your income range along with simultaneously building a safety fund. Most citizens find themselves in circumstances where they keep paying off their debts and ignore putting aside a part of their money for retirement. This negligence ends up costing more, not only for the individual but also for society at large owing to the minimal or zero investment from the debtor towards the economy.
Solution – Chapter 7 bankruptcy
It would be a feel-good act for the debtor to pay off his debts but from a long term perspective, it is not an ideal solution. Filing for a Chapter 7 bankruptcy would be an ideal option for these debtors. If the debtor walks away from the decision of filing bankruptcy, he not only loses his current income in paying off the debts but also the savings that he could have accrued if the amount had been invested wisely in a high-yield savings fund.
Chapter 7 bankruptcy is also good for the debtor as it assures a fresh financial start. Through this type of bankruptcy, the debtor is liable to keep his assets that fall under the state and federal exceptions. He also has the choice to apply for relevant exemptions to the bankruptcy estate. The debtor is saved from the nagging collection attempts when he files for Chapter 7 bankruptcy and in the ulterior end of the process, the dischargeable debts are cleared for the debtor
Isn’t this convincing? If there are still unanswered questions regarding this bankruptcy procedure or if you are seeking clarity on what options are best suited for your condition, dial 888-297-6203 to talk to the financial professionals at Recovery Law Group. The firm of bank attorneys have immense knowledge of the common debtor scenarios and will be able to share insights into Chapter 7 bankruptcy. They work with clients in the Los Angeles and Dallas regions.