The decision to file for bankruptcy is an important one and should not be taken lightly. Many people who are faced with their own financial abyss choose to bury their heads in the sand rather than face the problem head-on. This can have devastating consequences in the long run, possibly costing them more than they thought had they only been proactive in the beginning. For these people, the use of bankruptcy should be a serious consideration if any of the following situations is something they are currently facing. If after paying all their monthly living expenses (mortgage, rent, food, insurance, clothing, utilities) they only have $ 200 or less, then filing for bankruptcy may be right for them. Perhaps you recently lost your job, were laid off, or had a reduction in income due to a cut in your hours. Personal problems, such as a medical illness, or even a divorce, could force a person into large debt. If an individual’s debt consists primarily of credit card debt, medical bills, or personal loans, then they would also be a candidate for filing. Lastly, if the individual is being harassed by creditors, or facing a wage garnishment, repossession, judgment, judgment, or foreclosure, then they should seriously consider the benefits of bankruptcy.
Sure that filing for bankruptcy can be an emotional decision, but it no longer carries the same negative stigma that it used to carry years ago. Millions of Americans have had to file for bankruptcy, including famous actors, singers, and athletes. Large corporations routinely show up to restructure and come out more agile and stronger, so it shouldn’t be any different for the average American to do the same. After all, the reason bankruptcy was created was to give honest, hardworking Americans a new financial start. Without the ability to file for bankruptcy and clean the slate, this would not be possible. Why deal with creditors constantly calling and making threats when a person is experiencing a serious illness or has lost his or her job and cannot find a job? Creditors have become very assertive and intimidating and do not want people to know that filing is an option. They will say anything to threaten the debtor with statements like, they are homeless and just want not to pay their bills, or that they will go to jail for not paying their debts. This is simply not true.
First of all, debtor prisons no longer exist. Second, most people who file for bankruptcy have experienced a significant loss of income due to job loss, serious illness or accident, divorce, or the death of a breadwinner. Filing bankruptcy is not something everyone wants to do, but sometimes life circumstances beyond one’s control make filing for bankruptcy the only way out of insurmountable debt. When someone is in this bleak financial situation, the question should not be whether or not to file, but how soon can I start filing for bankruptcy so that I can get back on the road to recovery.
