Today is Independence Day, so naturally I have to write a blog about declaring your independence from debt.
The bankruptcy code was written to help honest, yet unfortunate debtors who find themselves unable to repay their debts. Bankruptcy provides us with the rare opportunity to push the “reset” button in our lives. Chapter 7 or Chapter 13 bankruptcy are not tools to be taken lightly. However, under the right circumstances, bankruptcy is a very powerful tool.
Did you know that nothing in the bankruptcy code prevents you from repaying your debts even after bankruptcy? If you later on decide that you want to repay some of your debts, nothing will stop you. What bankruptcy says is that your creditors can’t ever force you to repay your debts after your case is over. Some people have such a strong moral obligation to repay their debts, and that is fine. But don’t let your creditors ruin your life just because you have fallen on tough times.
Independence from debt means that you will have the opportunity to rebuild your finances. This fresh start will give you breathing room to tackle the fallout from job losses, huge medical bills, or some unfortunate financial decisions.
For the most part, the bankruptcy courts and trustees don’t much care about how you got yourself into a dire financial place. At no point in the process will anyone be judging your individual situation. The only exception to this rule is for debtors that have engaged in illegal conduct or fraud in the past.
Want to declare your independence from debt? Call my office today at (916) 333-2222.