Alaska consumers who find themselves overrun by debt may know how difficult it can be to see a way out. It feels hopeless to be unable to deal with your debt on your own, and the calls from creditors and debt collectors only add to your stress. It is overwhelming, but there are options available to you.
If you find yourself in this situation, you may consider the benefits of consumer bankruptcy. This is a major step, and many people are reluctant to do it, even when facing insurmountable financial obstacles. While it may seem like an intimidating choice, in reality, filing for bankruptcy can offer you the opportunity to deal with your debt once and for all. Depending on the type of debt you owe, Chapter 7 may be the right choice for you.
Why should I consider this option?
It's normal to have significant questions about bankruptcy and what it will look like in your everyday life. Before you make this important legal and financial decision, it can be helpful to know the following:
- If you have certain unsecured debts, such as credit card debt or medical bills, Chapter 7 could be the ideal choice for you.
- Chapter 7 bankruptcy is a process that only takes a period of three to six months to complete.
- There are certain exemptions allowed though bankruptcy law that will allow you to keep many of your personal possessions.
- Bankruptcy will enact the automatic stay, which will prevent creditors from taking any continued action against you after you file.
- This process will allow you to discharge certain debts, and you can emerge to a better financial future.
While there are many benefits to Chapter 7 bankruptcy, there are certain things that this process cannot do. For example, it cannot excuse you from your child support obligations or past-due support that you need to pay. Additionally, bankruptcy law does not allow for the discharge of student loan debt.
A future free from debt-related stress
If you think that Chapter 7 could be the right option for you, you would be wise to take quick action to protect your interests and learn about your legal options. If you are not eligible for Chapter 7, there are other choices, such as Chapter 13, that could be available to you.
Dealing with debt is stressful, and it can ultimately have a negative impact on many areas of your life. By taking this step, you can deal with it effectively and carve out a future for yourself that is free from the stress of many types of debt.