CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Why Bankruptcy Warnings Might Not Be Valid

warningAre Bankruptcy Warnings for Real?

Simply Google the term “bankruptcy” and you’ll get a slew of information, much of it from credible sources, admonishing the risks of filing and warning debtors not to take such a drastic option. These warnings might be well-intentioned and might help some people avoid making a mistake, but in many cases, the risks listed are misleading.

The key to making the right choice for you when it comes to bankruptcy is determining how valid a warning is and how it applies to your specific situation.

Many warnings against bankruptcy paint it as an easy way out when it’s anything but. They make it seem as though people rush into bankruptcy and use it to excuse them from their responsibilities when in reality, this is rarely the case.

The truth is most people agonize over their decision to file for bankruptcy and avoid it for as long as possible, often to their detriment. They put their financial situation, and their emotional well-being at risk to avoid doing something they know they will be judged for doing, even though it can help them.

Suggested Alternatives to Bankruptcy

Many of the warnings about bankruptcy are accompanied by suggestions or alternatives you might take instead of filing. These include curbing your current cost of living, getting a second job, or contacting creditors to negotiate your existing debts.

Unfortunately, these suggestions don’t work for everyone, especially those who are deep enough in debt to seriously be considering bankruptcy. Not to mention these suggestions fail to take into account the health, age, or specific circumstances of the debtor.

For some people, alternatives to bankruptcy are merely delaying the inevitable and actually worsen the situation.

Can You Negotiate with Creditors?

Take the example of negotiating your existing debt with creditors. It seems easy enough. You can do it even if your health is poor or you can’t secure a second (or first) job. You should be able to do it right from the comfort of your living room couch, or so the bankruptcy warnings claim.

But just because it’s easy to try to negotiate with creditors doesn’t mean it will work. Nor does it mean it will pay off long-term.

In many cases, creditors refuse to negotiate with you. In others, even if you can negotiate better terms on a loan, you’re unable to afford those re-negotiated terms, too. This article from The Nest explains why negotiating with creditors and using loan modification and debt settlement can be a mistake if you’re suffering financially.

Negotiating with creditors can leave you stretched too thin and facing the same fate as before, just a few weeks or months later down the line. Not to mention, if you used savings to pay under the terms of the renegotiation, you’re worse off than you were when you started because now you’re deep in debt with no savings cushion.

Ignore the Scare Tactics and Seek Sensible Advice

Other warnings against filing for bankruptcy include damaging your credit (it’s damaged every day you are behind on your debt), losing your assets (many of them are protected through bankruptcy exemptions), and making it impossible to ever own a home (simply not true, though the process looks different for someone who has filed).

These are scare tactics used to prevent you from filing even when filing would be in your best interest.

So how do you decide what’s best for you?

Simple.

You take a long hard look at your specific circumstances, discuss those circumstances with an expert, and go from there.

Granted, bankruptcy isn’t right for everyone. But it’s also not something that should be written off because it’s drastic. For many people, something drastic is exactly what’s needed to save the sinking ship.

If you’d like to know more about bankruptcy or you’re concerned the information you have about the process is misleading you into making a mistake, we can help. Contact the Tampa areas Bankrutpcy Law Offices of Robert M. Geller at (813) 254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Could There Be Changes on the Horizon for How Student Loan Debt is Handled in Bankruptcy?

If you’re wondering how to file for bankruptcy for student loan debt or you’re wondering if bankruptcy can help you...
Read More

Does Bankruptcy Clear Student Loan Debt?

Many people considering bankruptcy wonder “Does bankruptcy clear student loan debt?” Until recently, that answer was almost always “no.” But...
Read More

Will Student Loans Force You Into Bankruptcy? Here’s How a Student Loan Bankruptcy Attorney in Florida Can Help

If you’re struggling with student loan debt and not sure what comes next, a student loan bankruptcy attorney in Florida...
Read More

Have You Received a Letter from the IRS About a Tax Debt? Here’s What You Should Know Before Responding

Here's what you need to know if the IRS has contacted you about tax debt. Every year the IRS contacts...
Read More

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions