Is Bankruptcy an option for me?

To start with let me dispel what I consider a myth.  The vast majority of folks that I have had the privilege to help did not get in their present financial position out of negligence, or what I would call irresponsible behavior. Most folks, like allot of Americans, have lived their daily lives being only one event away from a financial disaster.  For example,

• How many folks do you know that could afford to live on unemployment alone for 3-6 months?
• How many folks can afford to be out of work due to injury or illness for a month or longer? 
• If your spouse were to suddenly leave (no longer providing income) could you continue to live like you did last month?  and,
• Who didn't loose their life's savings in the real estate market recently?

Bankruptcy can be, and often is, the right strategy for an individual or family to follow.  I say strategically because when it is done properly and with the right intent it truly can provide you a fresh start.  However, it should never be the first option you think of as there are often many less intrusive options.

For example, depending on the type of debt, you may want to consider ...

• Credit Cards .............work with the card holder to reduce your interest payments.
• Mortgages .................work with your mortgage company to apply any missed payments to the end of the term of the mortgage.
• Medical Bills ..............contact the individual providers to work out payment plans.

The key to being able to work with a creditor is to contact them early on when you first anticipate that you might be in a pinch!  Communicate with them early and often is the best game plan.

One of the things that most folks do not understand is that often creditors will not work with you until you are already 3-4 months behind.  The thinking here can be as simple as this:  if you are current with your bills then what's the problem.  Companies use the fact that you are behind as the indicator of the problem - otherwise, from a business perspective, they would effectively be loosing money lowering your interest rates!  Welcome to capitalism at its finest!

If you've tried everything short of bankruptcy and you are starting to get calls or letters about...

• Court action,
• Warrant-In-Debts,
• Foreclosures,
• Suspension of service (basic utilities, etc.)

Then it is probably time to meet with someone to talk about the opportunities that Bankruptcy can provide.  Below, I include some real world examples of the benefits of filing.

What Bankruptcy can do for you ...

• Upon filing, immediately stop any type of debt related court action that is (1) already filed and scheduled for a hearing, or (2) being threatened by a creditor.
• Stop payroll garnishments.
• Stop foreclosure actions on your home.
• Stop repossession actions with respect to your car.
• Stop the phone from ringing off the hook.
• Stop the constant stream of mail from bill collectors.
• Keep the light and water on.
• and, if your car was recently repossessed, you may be able to get it back!

The bottom line is this, when your debt load gets to the point that you can't sleep at night, it is a constant stress factor between you and your spouse, or a whole host of other things ... make an appointment and speak with someone. 

Overwhelming debt can cost allot more than money;

what is it really costing you?