Asking someone if you should file for bankruptcy isn’t going to get you a simple “yes” or “no” answer, it runs much deeper than that. Your close friends and family may even suggest that filing for bankruptcy is a last resort only after all other avenues have been explored and exhausted.
As you are sitting there weighing out your options, consider that filing for bankruptcy is not just a financial decision, there is a social stigma attached to bankruptcy as well. It’s not like everybody knows that you are filing for bankruptcy, but friends and family will know in all likelihood.
Bankruptcy is kind of like getting road rash wiping out on your bike or skateboard, it looks really bad at first, but it clears up rather nicely in time.
Filing for bankruptcy should not be taken lightly and you should consider all of the alternatives before making a decision. The Law Offices of Loomis and Greene, your bankruptcy lawyers in Loveland, offers this checklist to see if bankruptcy is right for you.
Make Sure You Understand the Downside of Filing for Bankruptcy
There are classes you can take that will cover what happens when you file for bankruptcy. Keep in mind that not all of it is good news. In addition to the hit your credit score will take, there is a social stigma attached to bankruptcy. You might lose your home, land and other property if you file. Just think about the bad things so there are no surprises when you do file.
You Have No Other Options
It is a good idea to visit all the options available before making a decision to file for bankruptcy. If at all possible, see if a debt management plan might be the better option. If you can find one that will get you out of debt in fewer than five years, that is a desirable option for many.
You are Comfortable Doing This
Remember that when you file for bankruptcy, you are basically stiffing the people you owe money. It may or may not feel personal to you, but you are negating your obligations anyway.
You might feel relieved right after you file for bankruptcy, but this could change into guilt or sadness afterward. You also want to be careful that you don’t start to feel like a failed person filing for bankruptcy.
Don’t Make the Same Mistakes Twice
Bankruptcy is great because it allows you do get to a better place without losing everything and puts you in place to make positive changes in your life.
The problem is that if you haven’t learned your lesson, you are destined to repeat the bad habits that may have put you in the situation in the first place.
You Don’t See an Improvement
If you look three or five or six years down the road and don’t see your situation getting any better, then it is probably a good idea to file for bankruptcy. However, if you know that things will get better if you hunker down and work hard and diligently, then maybe bankruptcy is not the answer.
If you have any questions about bankruptcy, contact the Law Offices of Loomis and Greene.