How Can You Stop Drowning in Overwhelming Debt?

Stressed father looking at financesMany people buckle under the weight of an overwhelming debt, which leads them to lead a miserable life. Filing for a Chapter 7 bankruptcy can offer some relief to let you lead a good life.

It’s building up slowly and steadily and by the time you realize it, you’re now drowning in debt. Excessive consumerism, overbearing medical bills, or just terrible decisions can leave you in a financial pit. Skyrocketing interest rates on a limited income don’t help your cause either. Before you know it, you’re battling bill collectors left and right.

If you find yourself in such a situation, you’re in some deep water. So deep that you need to a life jacket to avoid drowning.

Address the elephant in the room

The first step to resolving such a situation is acknowledging that you have a problem. Playing hide-and-seek with bill collectors only serve to dig you deeper. Fortunately, the federal government offers a way out through Chapter 7 bankruptcy, and it would be wise to take this lifeline.

This provision relieves most unsecured debts, such as personal loans, medical bills, and credit cards. However, you need to prove that it would take more than five years to pay off the debt even after taking the most extreme measure. Therefore, you must pass the bankruptcy means test to become eligible for the debt relief program.

Seek legal counsel

Despite your best efforts, you’re unlikely to get through such a process without a legal counsel. Rather than take a chance and bungle it, it’s best to hire the services of a credible Chapter 7 attorney in Salt Lake City to have a better chance. One misstep can have your application rejected.

If your petition were thrown out, you would have to wait for up to six months before you’re eligible again. Proper legal counsel not only ensures a smooth process, but also helps to resolve matters quickly. Your lawyer will advise you on the best course of action, saving you considerable headaches.

Life situations can lead you to carry too much debt that it overruns your income by a wide margin. Rather than buckle under its weight, you should seek out ways to relieve such debt and avoid ruining your life.

Posted on by Tsfp6 in Money Times

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