Bankruptcy provides an effective solution to the demands of unmanageable debt. While bankruptcy should never be a first line of defense against debt, it can offer a much-needed way out and the opportunity for a fresh financial start. Below are three ways bankruptcy will help you out of debt.

3 Ways Bankruptcy Will Help You Out Of Debt

1. Elimination Or Reorganization Of Debt

There are two main type of consumer bankruptcy, Chapter 7 and Chapter 13. Chapter 7 bankruptcy eliminates most of your unsecured debt, while Chapter 13 bankruptcy consolidates and restructures it into a more manageable payment plan. Whether you choose elimination or reorganization, bankruptcy provides the debt relief you need to get on a more solid financial footing.

2. Credit Counseling

As part of filing for bankruptcy, you must take a credit counseling course. This is a chance to learn how to successfully manage your finances in the wake of bankruptcy. Credit counseling also empowers you with the information you need to start rebuilding your credit after you file and begin making smarter decisions for your financial well-being. Not only do you have the opportunity to get out of debt, but now you will know how to stay out of debt.

3. Lawsuits & Wage Garnishments Stop

An undeniable advantage of filing for bankruptcy is, by law, creditors must stop any lawsuits against you and put an end to wage garnishments. This means you will have more resources at your disposal to put towards getting yourself out of debt. Having this break from collection action also offers valuable time to regroup and plan how you will budget your money moving forward.

For more information on filing for bankruptcy, call attorney Harry B. Zornow in Hamilton, Ohio, at (513) 737-9770. You can also visit his firm on Facebook and Yelp to stay current on relevant news and read reviews. Find out if bankruptcy is the right solution to your financial challenges, and contact Harry B. Zornow today.