Bankruptcy often has a negative connotation for most people for an action that often seems like the easy way out when too much debt has been acquired. Although bankruptcy is often abused by many people, there are still times when it can be the best option. For some, it can be impossible to repay debt or dig themselves out of a financial pitfall, making bankruptcy an option that will allow them to regain their life back.
You’ve Received Credit Counseling
Non-profit credit counseling is often available through several organizations that are approved by the federal government to have your financial situation evaluated. This works to evaluate all of your debt while provide the necessary options available. If your counselor believes that bankruptcy may be a realistic option for your financial situation, then it can be time to take the option a step further.
You Don’t Own a Lot of Property
In cases where bankruptcy is an option, the situation will be easier if you have a minimal amount of assets. Less property will be seized due to unpaid debts. The less property that you own means the less that you’ll lose during the bankruptcy process.
You’ve Exhausted Your Other Options
If you’ve weighed all of your options or attempted to find ways to repay the money, but still find the most relief and benefits with bankruptcy, then you may be a strong candidate. You should have already considered debt settlement, creating a modified payment plan, or using assets as collateral.
You Receive Aggressive Collection Calls
For those who are on the verge of bankruptcy, they often receive aggressive collection calls daily due to unpaid debt. This can wreck havoc on your emotional well-being, even if the calls are not verbally abusive or illegal in nature. This can often continue for several years even as the debt is repaid, making it difficult to live each day.
You Meet the Criteria
If you have racked up thousands of dollars in credit card debt or medical bills and are unable to repay it in the next few years, then it’s time to make bankruptcy a viable option. Although there are penalties involved, the pros can outweigh the cons when it means regaining your financial footing and having a chance at living a normal life again.
If you’ve found yourself piled in debt and in over your head due to poor financial decisions or even a job loss, then it’s time to consider bankruptcy for a second chance and there are places like Thompson and DeVeny Co., L.P.A. that can help you decide if it is the right move for you. You may lose a few assets in the process and have the bankruptcy on your record for up to seven years, but you will also be able to regain your independence and your relationship with money.