Ask a group of people what’s the worst thing that can happen financially and there’s a good chance at least a few of them will answer “filing for bankruptcy.” This is the sort of thinking that has given bankruptcy its stigma over the years and the reason why so many people do everything they can to avoid filing.
Unfortunately, the myth that bankruptcy is the absolute worst case scenario has cost a lot of people money, time, and peace of mind. Exhausting every alternative you have before finally giving in and filing for bankruptcy is usually a big mistake, and most people who end up filing admit they wish they’d done it sooner.
Obviously, if you have the money to pay your debts you should do so. But this does not mean depleting all of your savings and investments to pay off debt. As a matter of fact, draining all of your savings to avoid bankruptcy is more often than not a mistake.
It’s also important that you take action toward bankruptcy before you are penniless because filing is an expense. If you wait until you are down to your absolute last dime, bankruptcy might not even be an option for you anymore.
For more information on the cost of bankruptcy, check this out.
The key to knowing when to file and being able to accept that bankruptcy should not be viewed as your last resort is to dismiss all of the myths related to bankruptcy. There is no reason to be ashamed of filing and there’s no reason to think that one day, even if you file, you won’t get your financial life back on track. Bankruptcy isn’t the end of anything other than your financial stress; in fact, it’s the new financial beginning you’ve been hoping for.
Why Should You File for Bankruptcy Sooner Rather Than Later?
- Bankruptcy eliminates your legal obligation to pay many of your debts
- Bankruptcy can enable you to adjust your mortgage and other large debts
- Bankruptcy extends the time you have to repay debts that are not discharged
Filing for bankruptcy allows you to protect your 401k and other retirement savings. It also allows you to keep some of your savings, as well as your vehicle and your home. Your life will change after bankruptcy and you’ll give up control of your finances to your trustee, but with guidance from an experienced attorney, bankruptcy will actually help you protect things you risk losing if you don’t file.
If you are facing financial difficulties, it’s easy to understand why you’re scared. People lose their jobs, suffer expensive health problems, and encounter other unexpected life circumstances that leave them in dire situations financially. The good news is there are tools available to help deal with all of these situations. The key is to put your fears aside and take action that is really going to make a difference in the long run.
If you’re wondering if bankruptcy is right for you, or you’ve reached a fork in your financial road and using assets to pay off debt seems like the most obvious option, give us a call. We can help you make the best choice possible for your situation and get you on the path to a brighter financial future. Contact us for more information at the Law Offices of Robert M. Geller at 813.254.5696.