Many young families that are facing financial hardship worry about their future. They might know that bankruptcy is an option that’s available to them, but they often fear that pursuing bankruptcy will leave them with nothing. As a result, these families tend to work themselves into the ground in an attempt to climb out of debt. The sad reality, though, is that many of these families are in too deep of a hole to climb out.
The good news is that bankruptcy doesn’t leave you without resources to get by. In fact, there are a number of exemptions that allow you to keep thousands of dollars worth of assets. Even if that’s not enough, which may be the case if you want to keep a vehicle that still has an outstanding loan balance, you can take additional steps to ensure that you get to keep key assets.
The most effective way to do this is to reaffirm some debt. This requires you to enter into a reaffirmation agreement where you simply agree not to discharge the debt through bankruptcy and instead choose to keep the asset in question while you continue to pay off the loan behind the asset. When entering into one of these agreements you might be able to renegotiate the terms of the loan. Also, it may be easier for you to repay this debt after bankruptcy since you will have freed up funds that were being used to pay off other debts.
The thought of bankruptcy can be scary, but a lot of that fear is attributable to the unknown. Therefore, if you and your loved ones are struggling with overwhelming debt, then you might be relieved once you learn exactly what bankruptcy can do for you. A bankruptcy attorney who is experienced in this area of the law may be able to competently guide you through the process so that you can increase your chances of achieving the outcome you want and deserve.