Bankruptcy is a solution for someone who can’t pay their debts. There are many different reasons why someone may no longer be able to pay their bills. Some of the most common are a decrease in pay, loss of employment, divorce, or medical reasons. Bankruptcy can be good in some situations, it may not always be necessary. Just because you are in a financial strain does not mean you will qualify for bankruptcy. There are some things you will want to take into consideration first.
Am I a good candidate for Bankruptcy?
There is no easy answer to whether or not you should file for bankruptcy. If you are facing a hardship, aren’t able to pay your bills and just keep going more negative each month then you probably will want to file for bankruptcy. Before making a decision you should first consult a
bankruptcy attorney or credit counselor. They will be able to look at all the factors involved with filing bankruptcy, including the advantages and cost.
One of the most important factors in deciding whether bankruptcy is the right option for you is looking at the amount of debt you have vs how much income you make each month. There are also other factors such as how large your family size is and what kinds of assets you may own.
One major thing to remember is that you should never be ashamed to claim bankruptcy. Individuals get caught in the preditorial credit trap and have sales people pushing credit cards in their face every time they shop. We are not taught in school about finances as much as we should be. We are not prepared for the “big business” world when we graduate from high school and we definitely know nothing about living on our own. The good part is that there are a number of institutional answers and guidance which are available to every consumer nationwide. The worst thing you can do about your debt is to do nothing at all.
Bankruptcy should be looked at as a tool, not something so negative. Many people have filed for bankruptcy, even our own president, Donald Trump. Bankruptcy will NOT ruin your life forever. Many credit repair companies like to tell people this so that they don’t go that route. It is important to understand that spending months or years with bad credit may actually make it worse. In bankruptcy, you file your petition and you’re done once you get a discharge. Right after the bankruptcy ends you can begin taking out credit cards again, rebuilding credit and even start saving money.
Credit Repair and Debt Consolidation Maybe a scam
You should also be careful with so-called “credit repair” services. Any service which promises to pay off or eliminate bankruptcy from your credit history is likely to be fraudulent. They will end up taking money from you and perhaps making your credit worse than it was before using their services. Further, many of these companies have been sued in the past. Do extensive research before you decide to hire someone. It is important to only use services that are highly credible. Avoid fly by night operations at all costs. They will leave you in a world of despair and make huge profits at the same time. You should only file for bankruptcy after you’ve talked to an attorney or credit counselor.