There are many misconceptions regarding bankruptcy. There are some residents in Florida who may be overwhelmed with debt and have reservations regarding the bankruptcy process. A commonly held belief is that those who are filing for bankruptcy are bad money managers or are making irresponsible amounts of debt. However, this is simply not true for many individuals that decide to start the bankruptcy process.
Many people filing for bankruptcy have lost their job, experienced the loss of a loved one, are dealing with chronic illness or have been involved in an accident. Another significant reason people file for bankruptcy is due to financial problems associated with a business. The recent recession created hardship and financial issues for individuals from all walks of life.
Filing for bankruptcy can serve many positive purposes. Some choose to seek help to stop foreclosure proceedings or otherwise confront financial obligations that have become unmanageable. The forgiveness of debts or liabilities can bring much needed relief to those in a financial crisis. A person can choose to file for Chapter 7 (liquidation) or Chapter 13 (debt reorganization). Each form of bankruptcy has its own purpose and merits, depending on the needs of the individual.
Filing for bankruptcy in Florida can be the beginning of a new, debt-free life. Many individuals have a strong willingness to pay their debt but have been overwhelmed by circumstances beyond their control. Bankruptcy can aid a person in beginning to take back control of their life. These issues do not have to be faced alone, and many people take comfort in learning that help is available to responsibly confront their financial problems and build a framework for a return to economic stability.
Source: Forbes, “How To Bounce Back From Bankruptcy & The Loss Of Your Home,” Cameron Keng, Aug. 5, 2013