Is Bankruptcy for you?

You may find yourself in a difficult financial position during these uncertain economic times. Perhaps you have a steady job, but you are living paycheck to paycheck. Often two paychecks are needed to pay for the house, two cars, monthly living expenses, and of course, to support the minimum payments due to the many credit cards.

Then, the unexpected happens. Job loss, sickness, or an extended illness that causes you to lose your job. You may be recently divorced, or have had a business failure. Any of these setbacks can interrupt cash flow. Many people are just a paycheck away from Bankruptcy!

Before you know it, you are late on your car or house notes, and the pressure from creditors becomes unbearable. The fear of losing your car or house can be overwhelming. People who never ever thought they would be in this position, are often embarrassed and disappointed in themselves.

Bankruptcy is one way to relieve yourself of the burden of over extension of credit and harassment from creditors and collection agencies. Bankruptcy can help you repay your debts over time, or wipe out most of the debt completely, as the case may be.

However, Bankruptcy is not necessary or advisable for everyone. Sometimes credit counseling through a reputable non-profit agency or negotiating with creditors works. Unfortunately, more often than not, it is so difficult to have all of your creditors agree on lower payments, lower interest rates, or a settlement. As crazy as it sounds, some creditors would rather be paid nothing than accept a partial payment. Sometimes a collector receives full credit from his company on an account when the customer files Bankruptcy and the account is written off.

When creditors won’t work with you, or you are too far gone financially, Bankruptcy may be the best option available.