Bankruptcy is never something that you want to file for. However, it can be a tool that helps individuals as well as businesses get fiscally stronger in the future. In the corporate world, a bankruptcy can be used to negotiate new union contracts as well as get better terms from vendors.
Individuals who are filing for bankruptcy should consider whether they want a full discharge of their debt or a simple reorganization of their debt. Typically, individual debtors will have to file for Chapter 13 bankruptcy, which reorganizes outstanding debt. Certain items are liquidated with the funds being used to pay off creditors. The rest of the debt is then paid in installments over the next several months or years.
Filing for bankruptcy can provide many benefits such as the end of phone calls and letter from debt collectors. You will no longer be under the threat of legal action or foreclosure proceedings.
Hiring a bankruptcy attorney Lincoln NE is a good first step toward getting out of the financial mess that you are in. While a bankruptcy can hurt your credit in the short-term, the long-term prognosis for your finances is good. As long as you learn from your prior mistakes, you should never face a serious debt problem for the rest of your life.