Difficult debt situations can become overwhelming in the blink of an eye. Many people who are facing difficult debt have been fighting for a long time to keep their heads above water only to have some unfortunate event push them over the edge and into a situation where they can no longer manage their financial situation.
When you are facing an onslaught of creditors that you can no longer effectively manage, it may be time to gain a greater amount of leverage against them. Filing for protection under the bankruptcy code puts an automatic halt to all collection activities and forces creditors to the table where negotiations can occur under the watchful eye of a bankruptcy judge.
Former billionaire entrepreneur Sam Wyly understands the power of bankruptcy to provide needed leverage when attempting to work with creditors. Mr. Wyly has been facing a wide range of issues including insider trading accusations from the SEC and issues with the IRS that threatened him with massive liabilities. Being unable to arrive at any workable solutions to the those debt situations, Mr. Wyly chose to seek debt relief under the bankruptcy code in order to allow him to negotiate with the SEC and the IRS in a forum where he has a better chance of securing a fair agreement.
The protections available through the bankruptcy code are not just available to billionaires. Anyone who finds themselves facing mounting debt and no way out should understand what they have to gain from filing for bankruptcy. The bankruptcy process allows individuals and businesses to bring all of their creditors into one room where a deal can be negotiated to satisfy all of their claims. In most situations creditors are forced to take only a portion of the debt they claim. For those filing for bankruptcy, there are various protections for homesteads and other assets that can help them come through the process ready to begin rebuilding their credit.
To learn more about how bankruptcy can help you workout favorable terms with your creditors, speak with an experienced bankruptcy attorney.