Many people wait until the last minute of sanity before filing bankruptcy. Faced with extreme hardship and frustration, most people that consider it, don’t actually do it until they have nearly lost their minds fighting the uphill battle against financial struggle. Unless you know for sure that bankruptcy is your best option, making the decision to do it can be extremely difficult. If you have been struggling with the decision to file for bankruptcy and just need some advice, consider asking yourself a few questions. How you answer may help you reach a decision you actually feel good about.
For most consumers, sitting down with a budget is a great place to start to getting a clear picture of your financial situation. If you owe more than you make, paying down your debt will be impossible. Unless you know you’re coming into money in the very near future, simply breaking even every month puts you in a vulnerable position if an emergency arises.
If your budget paints a bleak picture and your liabilities outweigh your assets, you may want to try negotiating with your creditors. Not everyone is willing to work with you, but if you are struggling with the decision to file bankruptcy, knowing you have tried everything before you do it may give you the peace of mind needed to take the plunge.
If your financial situation is not about to change in the near future, bankruptcy may be the best answer. Overspending is one thing, but being physically unable to generate income is a whole different situation. Many bankruptcies are prompted because of catastrophic events that change the financial landscape of a family. If you fall into category, you may want to consider how you or your family will recover while dealing with the stress of financial struggle.
Anytime bankruptcy is being considered, speaking to a trusted attorney is advisable. They can usually offer advice that helps make the decision easier and the process smoother.