More and more people are finding themselves in a situation where they have no ability to pay their bills. Whether you’ve become unemployed because of the pandemic, had a medical emergency or made some bad decisions over time, your financial situation may have spiraled out of control. Whatever the reason, if there’s not a feasible way to resolve your finances, your best option may be bankruptcy.

Study the Options

When you first consider personal bankruptcy, the two most common types you’ll find out about are Chapter 7 and Chapter 13. Chapter 7 is the most common of the two and it discharges all your debt, although you may lose assets along the way. Chapter 13, on the other hand, will allow you to create a strict repayment plan over time while keeping your assets. Everyone’s situation is different and your reputable Rockville Bankruptcy lawyer will advise you which is your best option.

Show Responsibility

Many people are leery of resorting to bankruptcy because they fear it’s wrong or immoral. In actuality, these laws were put into place to save people that have no other choice but financial ruin. It shows more responsibility on your part to look for a solution rather than continue to dig yourself into a deeper hole. Although bankruptcy should be reserved for the direst situation, it doesn’t hold the stigma it used to, so don’t be afraid to ask for help.

Get a New Start

Once you contact an attorney and make the decision to go forward with bankruptcy, any and all collections against you will stop. Your next step will be to provide financial information to the court and you’ll be required to take a course on managing finances. Although bankruptcy is a matter of public domain, you still have rights under the California Consumer Protection Act. When your debts are discharged, you’ll get a brand new start and an opportunity to make better decisions about money.

Rebuild Your Credit

After your debt is gone, you’ll need to rebuild your credit. You must proceed with extreme caution to avoid repeating the cycle. One way is to apply for a secured credit card for people that have gone through bankruptcy. Another is to find a lifeline service provider to get affordable phone service. You can also enroll in automatic payments for your these bills, so you’re never late.

Get Your Life Back

Bankruptcy isn’t an easy decision, but it’s one many people have made in order to avoid financial ruin. Consulting with an attorney is the first step towards getting your life back and looking forward to a bright future.