California families may end up crushed by debt with very few options. One choice that is available to you is bankruptcy. Although you may hesitate due to the stigma, bankruptcy can be a helpful thing for a household that is trying to make a clean financial start.

Bankruptcy will help your credit

Your debt load will damage your credit when you have trouble making the necessary payments. At the time that you apply for bankruptcy, your credit score is likely very low. While bankruptcy does stay on your record for seven years, you might find your credit improving even after a few months because you’ll have so much less debt. In fact, studies have shown that the average score of bankruptcy applicants had already improved by an average of 82 points by the time their debts were discharged.

You can get freedom from debt

While bankruptcy may involve some liquidation of assets, you can get relief from a wide variety of debts that seem like they are crushing you. The most common types that people are freed from are credit card and medical debts. While there are some debts that cannot be erased, bankruptcy can improve your overall financial situation. You might hesitate to declare bankruptcy because you feel a moral obligation to pay your debts, but the law does give you protection. You may as well take advantage of what the law offers to better your life.

When deciding whether to file, you will need to choose between a Chapter 7 bankruptcy and a Chapter 13. The two have different legal implications. You may want to contact a bankruptcy law attorney to learn more about how the law could assist you. The attorney may help you navigate the bankruptcy law process and ensure that you get through bankruptcy more smoothly without any errors in your paperwork. Bankruptcy is stressful, but the assistance of a legal professional might make the process easier for you.