Many families turn to bankruptcy as a last resort after facing severe financial difficulties. Bankruptcy can help a lot of people get back on the right track, but it is not necessarily the right option for everyone. Let’s review what bankruptcy is and how it can help, and a few scenarios where bankruptcy may not be the best option.
How Bankruptcy Can Help
Bankruptcy is a way for those who struggle financially, you ask the court for relief with certain bills and agree to pay others, like home mortgage and/or vehicle payments. It is a good option for families or individuals who are experiencing unexpected financial difficulties, and are no longer able to meet their financial obligations.
Common Bankruptcy Misconceptions
Many people believe that Bankruptcy in New Hampshire is a way to maintain a luxurious lifestyle without having to pay for it, but that is not actually the case. Bankruptcy does not eliminate debt to secured creditors such as a mortgage or vehicle loan. If you elect to stop making those payments you must give up those assets and ‘walk away’ from the debt.
There are a few other financial obligations that cannot be discharged including:
- Child Support
- Student Loans
- Criminal Fines
Bankruptcy can help you get your life back on track. It is a great option if you feel like you are drowning in debt and cannot fully support your family. Contact an experienced bankruptcy attorney in New Hampshire if you feel like bankruptcy is the right option for you.