Should you file for bankruptcy?

It is typical for someone to question “Should I file bankruptcy? And if I file bankruptcy, will I be seen as a failure because it will appear on my credit score?” The answer to these questions is simply No. By filing bankruptcy, you are not a failure but instead a wise person. You are someone who have worked hard to correct things on your credit by yourself and for many that takes months or even years. And now you are simply tired, exhausted and do not see a way out. Well then bankruptcy is an option to consider. 

Instead, I want you to imagine all of the benefits of filing bankruptcy and how by filing bankruptcy, YOU WILL BE ABLE TO SLEEP BETTER AT NIGHT!

For many individuals and families, here are the most common reasons someone will likely file bankruptcy:

1. Paycheck or Tax Garnishments
2. To stop a lawsuit
3. To stop an eviction
4. To stop a repossession
5. To stop a foreclosure
6. To Return of driver’s license due to city or state fee suspensions

Many of us are used to the saying “Stop robbing Peter to Paul.” Well Congress created a law to stop that and for you to be able to get a “fresh start” on your financial future. Now let’s break this down.

What is Bankruptcy?

Bankruptcy is a tool granted by the government to assist individuals, businesses, farmers, and municipalities to find aid when debts are choking the day-to-day income. Bankruptcy comprises of different chapters, like chapters of a book. The most common chapters of bankruptcy for individuals and small business owners are Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy awards the individual or small business owner to waive the debts owed to a creditor. Chapter 13 bankruptcy awards the individual or small business owner to set up a payment arrangement to pay a portion of the debts owed to the creditors without the collection calls, collection letters or the decrease in your credit score. 

Bankruptcy is a legal way to assist individuals who are in need of financial help. This need is beyond repair. This need means after you get paid at the end of the month, you are unable to pay your day-to-day bills, such as rent, car note, car insurance and buy food and also pay creditors that you may owe money too.
Everyone does not meet the requirements and the eligibility formula to file bankruptcy. So, it is true that some people should not file bankruptcy. However, most should when your debts are choking you.

You can learn more in The Scoop: Bankruptcy and Why You May Need It? Available on all digital platforms and physical form on Amazon.com.