If you are struggling to pay off your debts and you are wondering what your options are, then the thought of filing for bankruptcy may have crossed your mind.

Almost everyone has heard of personal bankruptcy as a way to deal with debt problems, but few know exactly what the procedure is or how it can help. If you want to know more about personal bankruptcy, visit https://mentchlaw.com/.

Personal bankruptcy basics

Bankruptcy is a legal way to get rid of debt or develop an affordable repayment plan so those in debt can start over. In some areas, bankruptcy laws are only available to corporations. However, others allow for personal bankruptcy, a legal process that allows a person to file for bankruptcy.

How personal bankruptcy can help you

Contrary to popular belief, there is no such thing as a personal bankruptcy that can get you out of all kinds of debt. Debts such as guaranteed student loans, taxes, and child support still have to be paid. 

Types of personal bankruptcy

In the event of bankruptcy, all assets of the debtor, except those issued specifically, such as personal belongings and family inheritance, are transferred to the bankruptcy administrator for sale. 

Why personal bankruptcy was created

Much of today's economy is based on consumer debt. Taking out large mortgages, automatic payments, and credit card debt seems to be the norm. 

While some people find themselves in insurmountable debt due to a lack of self-control, more people find themselves in debt due to medical bills, job loss, or other inevitable events.