"Bankruptcy"

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What is bankruptcy?

What has changed in the new bankruptcy laws?

Is bankruptcy right for you?

Bankruptcy FAQ

How to find a bankruptcy lawyer

Is Bankruptcy Right For You?

      The decision to file bankruptcy is one that must be considered carefully. The reason is because the effects will stay with you for a very long time. If you have found yourself in a sea of uncontrollable debt with no end in sight and no way to continue paying the bills, then bankruptcy can provide some much needed relief. This is the main reason that bankruptcy laws exist. There are, however, consequences that must be factored into your decision as well. Among them, potential difficulty with finding employment in certain fields of work, the inability to obtain credit with reasonable interest rates for some time and the fact that bankruptcy will remain on your credit report for up to 10 years.

      Some of the more common reasons that an individual or couple may consider filing for bankruptcy is a loss of employment, sudden illness or injury, a failed business or simply the realization that overspending has occurred. The truth is that not everyone is responsible with their spending and, by the time it is realized, it’s often too late to regain control. With high interest credit cards, late payment fees and overlimit fees, account balances can easily double within 12 months time. After having attempted to catch up with payments, continue paying necessary monthly expenses and after debt settlement and negotiations have been exhausted, bankruptcy may be the only form of relief.

      If credit card payments are continually missed or go unpaid for long periods of time, the creditor may demand the entire balance be paid in full. If it isn’t, the debt will sometimes be referred to a collection agency or attorney. If an account is forwarded to a lawyer, the next step is almost certain to be civil litigation. Once this occurs, wages can and often are garnished. If creditors begin filing lawsuits due to missed and/or overdue payments, bankruptcy may be a realistic remedy.

      As mentioned earlier, there are consequences for filing bankruptcy. While ridding your life of uncontrollable debt is an undeniable benefit, the setbacks are not to be overlooked. If you plan to request a car loan or shop for a home within the next 10 years, you may be faced with lenders who are reluctant to approve your loan. If you are granted a loan, you will likely be faced with higher interest rates and be required to provide a larger down payment. If you plan on seeking new employment, you may find that some careers will be inaccessible simply because the employer pulls your credit file and sees that you have filed bankruptcy. A career in the banking, gaming or other field where you would be handling cash may be difficult to achieve after having filed for bankruptcy.

      When it comes to deciding whether or not bankruptcy is right for you, the best approach is to assess your financial situation and determine whether or not the consequences of filing are things that you can live with. The decision is not a small one and should be given great consideration but, when there is no other way out, bankruptcy laws are there to help you to get out of the debt pool and back on your feet.

      This article is to be used for informational purposes only. It should not be used as, in place of or in conjunction with professional legal advice regarding bankruptcy. Anyone who is considering filing a petition for either personal or business bankruptcy should consult a licensed attorney in their area for additional information and/or legal advice.