Out of control debt can affect people of all income levels. Many times a personal bankruptcywill result as a last resort to try to get out of debt. Sometimes bankruptcies will force individuals to sell some of their possessions in order to reduce their debt owed to creditors.
A former NBA star, Antoine Walker, is now being forced to part with his NBA Championship ring, which was recently sold for a reported $21,500. Walker is trying to help eliminate close to $13 million dollars in debt and he has approximately $4 million in assets. While most people don't have such expensive jewelry to sell, people might be asked to part with things that have more than monetary value to them.
Personal bankruptcy can be a way to stop creditor harassment and eliminate debt. Depending on a person's income level and amount of debt, among other variables, there are different types of bankruptcy a person can file.
Some bankruptcies will eliminate most debts, while others will provide the person with a structured repayment plan. Most people filing for personal bankruptcy will file for Chapter 7 or Chapter 13. Speaking with an experienced bankruptcy attorney can help a person determine what type of bankruptcy is right for their situation.
Because debt can get out of hand quickly, it is important to try to recognize when debt is becoming unmanageable early on. It out of control debt is detected early, an attorney can work to help minimize the effects that debt or a bankruptcy might have on a person's financial future.Source: The Huffington Post