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Bankruptcy FAQ

What is the difference between bankruptcy and debt relief?

Apr 18, 2022 | Bankruptcy

If you are in financial trouble, you may feel a lot of anxiety about what you should do to resolve it. Having debt can complicate many areas of your life, and prevent you from making big life decisions. Everything from housing to finding a car can feel impossible when you have debt hanging over your head.

While debt can hold you back, that does not mean that you are stuck forever. When it comes to resolving debt, you have options.

Understanding Bankruptcy

One option for resolving debt is bankruptcy. Many may think that bankruptcy is best avoided. However, it can be beneficial depending on your situation. Bankruptcy is a legal process that can wipe the slate clean of dischargeable debts and prevent your creditors  from hounding you. It can allow you to get a fresh start so that you can get your finances back on track.

Understanding Debt Relief

Debt relief is another way to manage your debts and get back on track. In many cases, the debt relief process can take longer from start to finish than bankruptcy. This is because it can often involve working with different debtors and trying to negotiate debt amounts. Depending on the types of debt that you have, or the amount, debt relief may make more sense for you long term.

When you are struggling with debt, it can be hard to know what to do. Some may feel so overwhelmed that they continue to let their debt build rather than deal with it. By educating yourself about your options, you can make better financial decisions and free yourself from some of the worries that debt causes.

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