Though the bankruptcy process can be emotionally challenging, struggling with overwhelming debt with no resources to help can cause a great amount of emotional strain as well. Fortunately, personal bankruptcy protections are available to help consumers who are struggling with debt and seeking debt relief.
While going through the bankruptcy process, it is helpful for the filing party to deal with the practical realities of the process and allow themselves to experiences the feelings that come up during the process which can also include relief because they are no longer facing the crushing stress of overwhelming debt. Any type of personal bankruptcy protection provides and automatic stay preventing creditor collection actions from proceeding during the bankruptcy process which can give the filing party some immediate breathing room.
There are two different types of personal bankruptcy protection which can help struggling consumers facing different financial challenges and situations. Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the filing party to liquidate non-exempt assets to repay creditors. Chapter 13 bankruptcy protection is an option better suited for filing parties with a reliable source of income that can be used to repay creditors according to a reorganization plan worked out with the help of the bankruptcy court. By reorganizing their debt, filing parties can repay their debt in a more manageable way over time.
Facing overwhelming debt day after day can cause emotional strain for struggling consumers. It is important that they are familiar with the different resources available to help them with debt relief and a fresh financial start, including personal bankruptcy options.