Monopoly is a popular board game for many Americans. In the game, the ultimate goal of each player is to drive the other players to bankruptcy in order to defeat them. With the “Monopoly” attitude still lingering in our culture, most people, including those on Long Island, New York, may think that bankruptcy is the end of their finances or that they have somehow lost the game of life.
Indeed, there are sacrifices that a person must take to eliminate their debt. For example, filing for bankruptcy can hurt a person’s credit score. A bankruptcy record on a person’s credit report may endanger that person’s job and rental applications in the future. However, a bankruptcy filing stays on one’s credit report for seven to 10 years but not for life.
Those contemplating bankruptcy need also remember that some personal property may have to be sold to repay a debt. Also, bankruptcy cannot ordinarily discharge certain types of debts including many types of taxes, alimony, student loan debt and child support.
While for these reasons bankruptcy might not be everyone’s best option, many Americans still believe that bankruptcy is the surest way to get debt relief and overcome financial challenges. Considering that bankruptcy can actually be advantageous for many people who are struggling with debt, it is no surprise that many Americans still avail themselves of it.
Additionally, bankruptcy can stop creditors from using any means against the debtor to collect the debt. It may prevent collection letters, wage garnishments and seizure of properties. Additionally, bankruptcy can be used by individuals who have become unemployed and who have no savings, those who have delinquent bills and those who want to stop foreclosure from happening.
Regardless of certain disadvantages, New Yorkers have an option to eliminate their debts by filing personal bankruptcy. Under such circumstances, considering the assistance of a legal professional may help the person to decide which bankruptcy option is best for his or her financial situation. There may be risks but what is most important is that they will be living a debt-free life after that.
Source: AL.com, “Is bankruptcy ever a good idea?” Matt Becker, July 30, 2013