Is Bankruptcy Right for You?

With the pandemic sweeping the world, millions of people are facing financial difficulties, so first you need to realize that you’re not alone.  The way that you handle those difficulties will determine whether your next step should be personal bankruptcy or something else.  Especially with recent changes to the economy, many people are literally running out of money and they simply can’t pay everything when there’s not enough money coming in.

While most people are going to avoid filing for a personal bankruptcy at all costs, many will still end up will be forced to do so.  Financial problems are not planned. And yet it happens.

This is something that nobody wants to deal with, but there comes a point when you have no choice. The bills do not just go away.  Learning how to deal with this can help a lot. There are several different types of things that you will be able to do to help you get out of debt without filing for bankruptcy, but this can take years and years to correct. Unfortunately, it takes longer to get out of debt than it does to get too far in debt. This is something that is very important to think about when you are considering bankruptcy.

You’ll likely also feel a certain amount of guilt, but remind yourself that filing bankruptcy does not make you a bad person.  It’s merely a way to get your life back after you’ve suffered a severe financial setback.

 

Bankruptcy & Credit Counseling

Are you one of the millions of Americans now considering bankruptcy?  If so, in most instances, you’ll need to complete pre-bankruptcy credit counseling before AND after filing bankruptcy.  Why are you required to complete it twice?  Unbelievably, the first one is to determine if you even need to file bankruptcy in the first place, or if there’s another way that you can get the fresh start that bankruptcy provides without actually filing.  And the second one is understandably regarding your emergence from bankruptcy and the steps you’ll need to take to keep your future financial life on track.

But let’s talk about the pre-filing credit counseling requirement before you even consider bankruptcy.  Since you’ll be required to take this step anyway, you might want this to be your starting point.  Before you call the attorney and start the paperwork to file.  Pre-filing credit counseling might actually help you prevent filing at all because they’ll help you to figure out if there are other options available.  Perhaps there are significant changes you can make to your household budget, or there’s a debt management plan that you could enroll in, or you may qualify for a personal loan… their job is to help you find these options or, if you’re better off doing so, they may even advise you that bankruptcy is the best option.

Since you’re considering bankruptcy, and it’s typically a requirement, you really have nothing to loose, so why not set up your credit counseling session first?  Not only will the counselor sit down with you and help you to prepare a workable budget, but he or she can actually help you figure out whether you need to file bankruptcy OR if you can avoid bankruptcy and possibly save your credit report from the long term damage a bankruptcy does.

Whatever direction you eventually take, credit counseling is obviously a win-win situation, and one that you seriously need to consider before filing for bankruptcy.