Personal bankruptcy protections can help in many different ways. Personal bankruptcy options can help struggling consumers with medical debt or struggling homeowners with foreclosure concerns. Personal bankruptcy options can help with a variety of the most pressing concerns struggling consumers likely have and need help with.
Personal bankruptcy protections are designed to help struggling consumers get back on their feet and enjoy debt relief. Different protections are built into the process that struggling consumers should be familiar with. Chapter 7 bankruptcy protections allow the struggling consumer to liquidate assets to repay creditors. Chapter 13 bankruptcy allows the struggling consumer to reorganize their debt to enjoy debt relief. These options help borrowers and consumers in different situations and with different goals, however, both options offer the promise of debt relief.
Both options include an important feature of the process which is an automatic stay, preventing creditor collection actions while the bankruptcy process progresses and thereby providing important breathing room from the stress and strain associated with overwhelming debt and bill collection calls which may be a daily reality for struggling consumers. There are certain requirements to qualify for different types of bankruptcy so filing parties should be educated concerning their options.
The personal bankruptcy process is available to help struggling consumers and is something they should be familiar with. Bankruptcy can help struggling consumers start over but not in the way many may think which is why they should be familiar with the protections available to struggling consumers seeking debt relief.