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Debt relief through bankruptcy gives consumers a fresh start

There are several reasons why consumers in Arkansas may find it necessary to choose bankruptcy to get out from under a crippling debt load. Reasons commonly cited for bankruptcy filings include credit card spending, unexpected medical expenses, losing a job and disability. Consumers who choose to get major debt relief by filing for bankruptcy are often industrious, hard-working individuals and married couples.

Many bankruptcy petitioners even have a history of good credit and regular bill-paying. Bankruptcy attorneys understand that many people who file for bankruptcy do so because they are victims of circumstances beyond their control. Nevertheless, many people are reluctant to choose bankruptcy when they get in financial trouble.

A remarkable, but somewhat obscured, fact about bankruptcy relief is that it is a government-sponsored remedy, governed by the U.S. Bankruptcy Code. It is the most powerful legal means available for a consumer to put aside massive debt and get a fresh start. In addition, the fact that it is governed by federal law makes it a morally acceptable option for those who qualify.

There is a widespread misconception that a petitioner's credit score will be permanently damaged and future credit will be impossible to obtain. Many people, therefore, choose irrational alternative options. For example, many consumers insist on continuing to pay penalty after penalty in hopes that their financial situations will soon right themselves. This is often because of their fear of bankruptcy.

The irony is that credit card offers, along with car loan offers and other promotions, generally start coming in the mail to those who complete a bankruptcy. That is because a second Chapter 7 bankruptcy cannot be filed for another eight years. Creditors like those odds and will often use them to their advantage.

Perhaps the best way to start anew after a bankruptcy is with a secured credit card. A little bit of Internet research will reveal much information on the subject. Choose the card or cards that give the best terms and then do not fail to pay the full amount each month. By following simple recommendations like this one, it is easy for those who have filed for bankruptcy to begin rebuilding credit. For consumers in Arkansas, critical debt relief and a fresh start after bankruptcy are realistic options. 

Source: investopedia.com, "The Best Credit Cards After Bankruptcy", Kimberly Rotter, Dec. 9, 2014

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