Bankruptcy is the process of allowing the federal courts to assist you with paying off your debts. Many people see bankruptcy as a last resort and something that is shameful. However, it can be a very smart option for many people, including those who are thinking about dipping into their retirement savings to pay creditors.
Here are some of the benefits of filing for bankruptcy rather than using your retirement funds to repay debts in Louisiana.
Bankruptcy gives you a fresh start
Bankruptcy helps give people a new financial start by helping get rid of credit card debts and most types of unsecured debts. Depending on what type of bankruptcy you file for, you may consolidate other debts, which makes it easier to make payments. Two types of bankruptcy that you can file for include Chapter 7 and Chapter 13. Both have slightly different methods of eliminating debts, but both types can help you get back on your feet financially.
Bankruptcy can save your hard-earned retirement
People build their retirement funds throughout a lifetime, so you should consider carefully before and generally avoid using those funds for anything other than retirement. Once your retirement funds are gone, they are gone for good and it can take many years to rebuild those savings. It is your right according to federal law to file for bankruptcy, as it is there to help protect assets such as your retirement.
Keep an open mind and carefully consider both the pros and cons before filing for bankruptcy.