The debt discharge at the end of the bankruptcy process is one of the most important parts of the personal bankruptcy process because it provides relief from debt and allows the filing party to enjoy a fresh financial start. As a result, filing parties and parties considering filing for bankruptcy should understand the details of the debt discharge.
Knowing what to expect is always important in any stressful situation and being aware of what to anticipate during the bankruptcy process is no different. What to expect from the bankruptcy process generally depends on what type of bankruptcy protection the filing party is filing for, however, bankruptcy protections in general can provide debt relief to struggling consumers and businesses.
Hardly a day goes by when major newspapers do not have a story about debt. This makes sense, as the average American has roughly $38,000 in personal debt. This amount does not include mortgage loans.
When a homeowner or consumer has fallen behind on home or car payments, they may wonder what to do. The reality is that different personal bankruptcy protections and options may be able to help them with the challenges they face and to hold onto a family home or vehicle they need to get to work every day.
Personal bankruptcy protection is a resource for consumers struggling with overwhelming medical debt to consider. An academic study from earlier this year revealed that 66.5% of bankruptcies were related to medical debt. It is estimated that 530,000 Americans file for bankruptcy annually because of medical bills and medical issues, including the inability to work because of medical concerns. Other reasons consumers turn to personal bankruptcy protection include an inability to pay their mortgage, student loans and other circumstances.