Do not be afraid of the word.  It is only a name for programs to help you with debt.  We live in a society where people know it is hard to pay for things, especially if you’ve lost a job.  If the companies you owe money are threatening you, it may be because they know this program exists and they are concerned that you will find it.    

If you use bankruptcy, the law protects you from these companies.  It can also protect your home from foreclosure.  For most people, there are two main categories of bankruptcy – known by their placement in the bankruptcy code – as Chapter 7 and Chapter 13.  Under Chapter 7, most of your debts are wiped away through a process called debt discharge, and your creditors are no longer able to ask you to pay what you owe.  Under Chapter 13, your debts are delayed through a court-authorized payment plan, and you pay them off at a rate you can afford.  While these programs offer freedom from crushing debt, they are not to be taken lightly, as they can adversely effect your credit and will not eliminate payments for alimony, child support, taxes, or student loans.

Finding a fresh start may be the right option for you. 

You may also be interested in:  Governing Philosophy, Personal Representation