Many people in New Hampshire are facing the endless problem of mounting debt. As they are forced to take more short-term loans and credit card debts to keep up their day-to-day expenses, their monthly minimum payments continue to grow, and their ability to meet them continues to fall. Even a minor interruption in their financial picture can have drastic consequences.

Many experts agree that bankruptcy is a preferable method to escape debt than simply struggling along, allowing minimum payments to become overwhelming. The only ways to get out of debt are to increase income, decrease spending or work out some sort of agreement with the creditors. Bankruptcy protection forces the creditors to consider the financial situation of the embattled debtor, requiring them to forgive as much debt as they can and work out a reasonable payment deal for the rest.

Many debts may be reorganized or even eliminated by a bankruptcy filing. The majority of indebted consumers will be able to file under Chapter 7, removing many of their personal debts in approximately 90 days. Once the chapter 7 filing is over, they may resume taking federal student loans on as well. Chapter 13 is also a common filing. Under Chapter 13 rules, the debtor makes regular payments for a period between three and five years, and at the end all remaining debt is erased.

The assistance of an attorney can be of great benefit to anyone who seeks bankruptcy protection against out of control debt. The attorney may be able to assist them with the filing process, answer any specific questions that they may have and help them on their way to a fresh financial start.

Source: The Huffington Post, “Should We File Bankruptcy Because of Business Debts?,” Steve Rhode, March 30, 2015