Our Bankruptcy Blog

Why File for Bankruptcy?

Insurmountable debt can make life feel like an inescapable prison.

Circumstances such as job loss or even medical debts can make it difficult to keep your head above water, and many people struggle to find a way out.

Bankruptcy can offer relief, but for most people, the idea of filing for bankruptcy can be a scary one.

It can create feelings of failure and shame, or make you feel as if you and your finances will be stigmatized for life.

Bankruptcy doesn’t need to carry the stigma of shame or embarrassment.

With care and attention, eventually bankruptcy clears up and fades away.

For many people, it can serve as the fresh start that they need to get back in control of their finances and gain their life back.

That is why bankruptcy laws were written in the first place, to give people a second chance.

If you need help determining when to file for bankruptcy, it is wise to consult an experienced bankruptcy attorney.

When to File for Bankruptcy

It can be challenging to determine whether your financial situation is salvageable.

Asking yourself a few honest questions can help you determine if your financial situation may be too far gone.

Ask yourself the following questions:

  • Am I receiving calls from creditors?
  • Have I been withdrawing money from my 401k or other retirement accounts to pay my bills?
  • Am I using credit cards to pay for basic living expenses such as food, gas, or toiletries?
  • Am I using one credit card to pay off another?
  • Does the thought of organizing my finances cause me to feel deep fear and anxiety?
  • Am I unsure of how much I owe?
  • Do I only make minimum payments on my credit cards or other debts?

If you answered yes to some of these questions, then it may be a good idea to start considering bankruptcy as a possible solution.

Next Steps

If you are interested in filing for bankruptcy for your situation, it’s a great idea to do some initial research about the key differences between Chapter 13 and Chapter 7 bankruptcy, as well as the means test.

Again, if you think you may be a candidate for bankruptcy, it’s best to consult with a trusted attorney.

Likewise, you should hire an attorney who will help to educate you on how to build your credit after bankruptcy.

This is an important aspect because once bankruptcy is filed, you want to be able to stay out of financial stress in the future.


Parker and DuFresne

Parker and DuFresne