Should File…
- Unforeseen life events: Things like loosing a job, dealing with an illness, or a death in the family can wreak havoc on one’s finances. Bankruptcy can discharge most kinds of debt including medical debt, debt incurred from funeral expenses, and credit card debt. You might want to seriously consider bankruptcy if a dramatic life event put you and your family in an unmanageable amount of debt.
- Financial Mistakes: We all make mistakes. Bankruptcy is a good option if you have wandered into excessive debt and can’t pay it off. Just be sure to learn from your mistakes so you don’t have to file again!
- Foreclosure: Filing a chapter 13 can keep your home from being auctioned off. Though you have to be sure that you can get caught up on your arrearage through your payment plan. If not, then you’re just procrastinating moving out of a home you can’t afford.
Should Not File…
- Premeditation: It’s wrong to file bankruptcy if you deliberately racked up debt with the intention of discharging it through bankruptcy. This is an abuse of the legal system.
- If you can pay back debt: You should pay back what you owe. Take an honest look at your income, expenses, and debt level and ask yourself if you could pay off your debt in 5 years or less. If you can manage to pay your debt in that timeframe, then I believe you should do so.
- If you think it’s immoral: You should never act against your conscience. If you don’t think it’s right to file bankruptcy, then go with your convictions and look into debt negation or another alternative to bankruptcy.
I understand that deciding to file bankruptcy can be a tough call. If you would like to discuss if bankruptcy if right for you, then give us a call. I’ve helped thousands Fairfield bankruptcy clients and would be happy to assist you