Is It Smart To File For Bankruptcy?

Is Going Bankrupt A Good Idea?

Are you considering it? In these economic times there are a lot of people (just like you) who are really struggling and looking at bankruptcy as a solution to ease their pain. And don’t judge yourself or worry about anyone judging you. Sometimes bad financial things happen to very good people.

is it smart to file for bankruptcyThe choice you must make is personal. It’s what is best for YOU! Is going bankrupt the right thing to do for you and your situation? Every individual situation is different. There is no “one size fits all” answer. Hopefully some of the concepts and information you find on our site will help you make a smart decision for your situation.

You’ll need to understand the major differences between Chapter 7 and Chapter 13 procedures. Chapter 11 won’t apply to you unless you are a business or corporation.

There are a lot of changes that have occurred in the bankruptcy act. Many people are still basing their decisions on outdated information and myths. There are also bankruptcy alternatives that many people have no idea exist. The concept that bankruptcy will make all your debts disappear is a myth. Certain kinds of debt are erased, but others may not be. Alimony, judgments from civil law suits and child support are a few examples of obligations and debts that won’t automatically erased if you decide to file.

What about life after you declare bankruptcy?

There is very little you can do that will damage your credit score worse than filing for personal bankruptcy. It will take many years for your credit to recover from this decision. Things like renting a car, renting an apartment, and getting a car loan or mortgage become very, very hard to do. That being said, it’s better to start from zero and work your way diligently and responsibly back, than it is to stay with missed payments and heavy debt loads for years and years.

Here’s what we believe to be the most important decision we try to be your smart bankruptcy guide. You must consider your physical and emotional makeup and condition before you decide whether to file for bankruptcy, try to put together a debtors repayment proposal, or just try to dig yourself out paycheck to paycheck. Some people wilt under the constant pressure of creditors calling and harassing them. They can’t sleep, their health declines, family relationships are strained and it changes who they are. If you simply can’t pay what you owe, and you have no way of increasing your income, it wouldn’t be smart to try and live your life under such stress.

On the flip side there are those individuals who’ve filed for bankruptcy and that has created an entirely different health issue. There are some individuals who go through the process and end up ashamed, embarrassed and broken. Many marriages have crumbled because each spouse blames the other for putting them in the situation that made them declare bankruptcy.

So, the decision to file for bankruptcy is a very personal choice. Are you the type of person that would do better if you could simply get a fresh start, or are you the type that will never forgive yourself for the embarrassment?

Whatever you decide, make sure you get all the information you can. It’s not just about the law, finances and percentages. Make sure you look at the personal and emotional aspects of going bankrupt.

There are some people who try to file for bankruptcy themselves. That is your choice. However, we suggest you consult with an attorney or bankruptcy lawyer to discuss all of your options. And, in most cases a reputable personal bankruptcy attorney will offer you a free consultation to get some of your questions answered.  They might suggest other options like a debt repayment plan or consumer proposal. Whatever you decide, we hope we’ve helped by being your smart bankruptcy guide through some of these ideas.

So, Should You Declare Bankruptcy?

Ultimately, the decision is as much about you personally, as it is your financial situation. For some people going bankrupt is a good idea. For others, bankruptcy is not a solution to their problem and is NOT a smart thing to do.