One of the more common questions we’re asked is: “Should I file bankruptcy?” Ultimately, the choice is yours, but perhaps we can help make the decision easier. Let’s address this fact first: No one wants to file bankruptcy. You do it because you need to, and it will improve your life in the long run. So, how do you know when you need to? Below are some factors we’ve identified that may help:
- You’re being garnished or receiving correspondence from a local attorney who is threatening garnishment.(Typically at this point the only thing to stop a garnishment is to file a bankruptcy).
- You were thinking about bankruptcy this same time last year and discussed it with your spouse or other family members. (Are you still robbing Peter to pay Paul? Let’s face it–if you are still struggling with debt after trying to deal with it on your own for more than a year, you may not be able to solve it by yourself.)
- You’re heading towards a life changing event but already can’t make ends meet. (Are you meeting those minimum payments on your credit card but still having to use them for emergencies….AND you’re a) expecting a baby, b) worried about losing your job, c) heading towards retirement?)
- You have no savings. (Not just a 401k, IPERS or IRA. Do you have a savings account to draw from instead of turning to your credit card? )
Sometimes life throws you a curve ball. A car breaks down, your child becomes ill, your furnace breaks, you lose your job, or you get a divorce. Sometimes these things happen all at once. If you are accustomed to using credit to deal with such unexpected expenses, you are in a downward spiral. Eventually, you will use your credit card one too many times, you’ll miss a payment, or you’ll hit your spending limit. The next emergency that comes up could just be the straw that breaks the camel’s back.
Let’s talk about your financial situation, and how you can regain some financial stability. E-mail us at [email protected]