The decision as to whether or not to file for bankruptcy is big one and should not be made lightly. Overwhelming debt can have a dramatic impact on a person’s life. When an individual has a lot of debt, the individual probably has trouble sleeping at night and is probably dealing with a very high amount of stress. Relentless creditors often send harassing letters and call at all times of the day. Creditors can also garnish the debtor’s bank account and wages, making it difficult to pay for food, rent and utilities. Countless marriages have ended because of the financial stress that is associated with carrying excessive debt. Financial stress also causes real health issues for many people.
Bankruptcy is a legal remedy, meaning debtors are using the law to wipe out debt when they have no way of paying back their creditors. Bankruptcy can also give debtors a fresh start in life, allowing them to begin again with a clean slate. Most people do not ever plan on filing for bankruptcy but when faced with extreme financial burdens, it may be a person’s only option.
A bankruptcy discharge eliminates the legal obligation to pay back most debts. This means that once debtors file for bankruptcy, creditors have to stop all collection efforts including all harassing letters and phone calls. Creditors also have to stop garnishments, repossessions, foreclosure sales and law suits. Bankruptcy is a way of providing debtors with financial peace so that they can restart their lives. If at any time in the future a person who has filed for bankruptcy has the means and ability to pay back his or her creditors, the person may voluntarily do so even though there is no legal obligation to repay creditors whose debts have been discharged in a bankruptcy. This means that even though a debtor has no legal obligation to pay on discharged debts after the bankruptcy case has been completed, if the debtor feels the moral obligation to pay the debts in the future the debtor is allowed to do so.
The bottom line is that most people only use bankruptcy as a last resort and should not feel guilty about doing so. THERE IS LIFE AFTER BANKRUPTCY. Most people who file bankruptcy are allowed a new beginning free from the heavy burdens associated with carrying an unmanageable debt load. It is important to talk with your Utah bankruptcy attorney, Justin M. Myers to review all of your options