A personal bankruptcy is not something to be scared of. It’s a simple process and one that can get you back on your feet when you are in over your head with debt.
Bankruptcies do have some negatives, like affecting your credit and hurting your ability to get financing or credit in the following years, but that doesn’t mean that they can’t be beneficial. If you’ve already missed payments, the chances are that your credit is already suffering the side effects of an income that does not match your financial responsibilities.
Should you consider bankruptcy?
Before you decide if you should go through bankruptcy, you’ll need to ask yourself if you have done all you can to pay off your debts and get back into control of your finances. If you haven’t tried debt consolidation, negotiating with your creditors and other options, it may be best to attempt those first.
There are some cases where you may want to seek bankruptcy as a solution, such as if:
- You have debts that far exceed your income and cannot afford to pay them back
- You lost a job with no ability to bring in an income to pay your debts
- You’re facing foreclosure
- You’re tired of collection agents calling you to collect on your debts
If you aren’t sure where to start, it’s worth taking some time to talk to your attorney before you decide on bankruptcy. Our site has more on bankruptcy and when it’s a good idea to start considering it, so you can get more education on this important topic.