Posted on Friday, March 27th, 2015 at 4:08 pm
The Webster Dictionary defines bankruptcy as the quality or state of being bankrupt or the utter failure or impoverishment. Although the definition of bankruptcy gives off a negative connotation, it doesn’t have to. Filing for bankruptcy can benefit individuals, companies and society as a whole.
A Fresh Start
People often don’t understand the process of filing for bankruptcy, however, bankruptcy is a legal procedure by which an individual or a business can discharge its debts when the petitioner (the person or company filing bankruptcy), does not have the means to pay off the debt within a reasonable period time. Bankruptcy can help both individuals and companies have a fresh start.
An Over Abundance of Debt Options
In today’s environment of the over abundance of credit cards, pay day loans, car loans, and first, second and third mortgages, it is very easy to fall behind in paying bills, which often leads to people drowning in debt. Falling deep into debt is not a positive thing for either the individual or for society. In fact, according to the Federal Reserve, the average household in the United States has approximately $15,799 in credit card debt, $54,000 in household debt and credit card debt for the United States totals $793.1 billion.  With statistics like this, it is no wonder why so many of us are struggling and forced to file for bankruptcy.
Earnings Are Meant to Motivate
Although our clients often worry about embarrassment that may come from filing for bankruptcy, many of our clients who are forced to file for bankruptcy are hard working individuals who can no longer afford to hand over every penny they make to creditors and there is nothing embarrassing about that. After all, the purpose of earnings is to motivate people to work hard, but how motivated can you be if you know that most of the money you make will go to creditors? Without the option of filing for bankruptcy, many people would work long hours just to hand over hard earned money to creditors.
Bankruptcy Stop the Calls and Collections Immediately
Bankruptcy helps to give debtors a fresh start, alleviating what could be a tremendous burden. Further, when an individual or company files for bankruptcy, the automatic stay goes into effect meaning the harassing phone calls, letters and potential lawsuits from all creditors stop.
If you are overwhelmed by mounting debt and tired or receiving harassing phone calls from creditors, contact Lawrence & Associates Accident and Injury Lawyers, LLC today. We can help you obtain that fresh start that you deserve!
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Footnote:  http://www.statisticbrain.com/credit-card-debt-statistics/