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One of the most common question potential clients ask is, “Who should file for bankruptcy?” Unfortunately, this isn’t a simple question to answer, and it’s going to depend on each person’s unique financial situation. However, the following is a non-exhaustive list of situations that should make you at least seriously consider filing for bankruptcy, especially if more than one applies to your financial state.
- You borrow money from one credit card to state current on the other.
- You are depleting your savings to keep your bills current and the end of your savings tunnel is in sight.
- You are going without basic essentials in order to remain current on your debt payments.You have defaulted on credit card debt and now rude bill collectors are harassing you at all hours of the day and night.
- Your creditors are suing you for defaulting on your debt, or have already received a judgment against you.
- You have sincerely considered credit counseling but discovered they demanded more than you could afford to pay or, worse, scammed you out of money.
- You have suffered a job loss or had your salary decreased.
- An illness or accident has driven you into severe medical debt.
- You are so far behind making house or car payments that your lender is threatening foreclosure or repossession.
- Your finances are stressing you out to the point you don’t even want to deal with them, or the stress is taking a toll on your relationships with friends and family.
Any one of these situations would be hard enough to deal with alone, but add two or more into the mix and it can be hard just to make it through each day. Those dealing with a financial atmosphere that seems hopeless do not need to suffer in silence. Please consider contacting a skilled bankruptcy attorney for a free consultation to at least find out what solutions declaring bankruptcy could offer in your specific case. Bankruptcy was created to help consumers like you, and there is absolutely no shame in taking advantage of that institution. You can always pay it forward later by helping others out once you get back on your feet. For now, focus on your family and getting your finances in order. Things can get better.
September 1st, 2009 at 1:25 pm
I think the last factor is very important. Filing bankrupcty can really improve someone’s quality of life. Financial difficulty and the stress that comes with it can negatively impact close relationships, and that can really make a someones’s situtation far worse.
September 1st, 2009 at 9:03 pm
Mr. Sparks sure raises an excellent point. Quality of life is something we all forget to focus on when we are facing hard times. Sometimes you just have to stop and say, “why am I paying my credit card companies over 50% of my earnings?” I think Mr. Sparks would agree that filing for bankruptcy is the smart choice.
September 1st, 2009 at 11:13 pm
I have been doing this for 10 years and consulted with thousands of clients and the truth is that people don’t rush into to filing bankruptcy. Instead they keep putting it off even if it means losing sleep or worse losing their property. If you are afraid that your finances have gotten out of hand and you might lose your house or car it is time to get professional advice. You have rights as a consumer to stop collection efforts by filing bankruptcy. If you can afford to pay your creditors back in full that is exactly what will happen but under your terms and with peace of mind that you won’t lose your home or car.