It's okay to file bankruptcy
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People end up in debt for many reasons – whether it's a job loss, more medical bills than you can pay, a divorce or some other upheaval that's left you in financial trouble. You may be still drowning from something that happened years ago or it may be a new occurrence that's left your finances in disarray. Either way, there is no reason to let this unfortunate situation linger. Filing bankruptcy does not make you a bad person. It just means you're a good person caught in a bad situation.
Bankruptcy exists for a reason
Back in the old days, if you couldn't pay your bills, you could be put in jail – specifically into debtor's prison. This was a terrible system and didn't benefit the debtor or the people they owed money to. This is an uncivilized and untenable outcome. Voluntary personal bankruptcy was first allowed by law in 1841. The intent of the law was to allow debtors to get a legal fresh start when, through no intention of your own, debts exceed your ability to pay.
Not only does the law say it's okay to file bankruptcy, even the Bible agrees debts should be forgiven. Deuteronomy 15:1 says “At the end of every seventh year you must cancel the debts of everyone who owes you money.” The bottom line is that bankruptcy and debt relief exists for a reason. There is nothing shady or wrong about filing bankruptcy. In fact, opting for bankruptcy can be one of the smartest decisions you can make.
Why you should consider bankruptcy
When you've got debts piled up that you can't pay, it's not a smart move to let this situation go on for too long. The longer you go without making payments, the more interest and late fees will pile up. You'll be put into collections and you may end up getting sued and having judgments issued against you. On top of this, excessive debt impacts your health, your ability to focus on the job and your quality of life. The longer you allow a bad debt situation to fester, the worse your life will get.
And while you may feel bad about not paying back creditors, consider this. When you're mired in debt, you're not contributing to the economy. And companies that offer credit rarely lose money when you look at the big picture. The interest they charge on financing is intended not only to cushion them against losses when people can't pay, but to continue to profit despite these losses. Bank of America, for instance, netted $11.4 billion last year and American Express made $5.4 billion.
How to find out if bankruptcy is right for you
Filing bankruptcy is a serious step and not one to be taken lightly. But it's also not something you should fail to consider if your debt is out of control and you don't know what to do about it. Contact the law offices of John T Orcutt for a free consultation at one of our convenient North Carolina locations.
When you come in, you should bring copies of your pay stubs, your credit report, copies of your billing statements, mortgage, car loan and tax returns. We'll look all of this over and then give you our recommendations as to how you can best deal with your debt. Bankruptcy isn't a fit for everyone, but when it is, it can offer unparalleled debt relief that can give you peace of mind and a financial fresh start.