Nobody wants to file bankruptcy unless it is their last option. In my office, I have every client sign a paper indicating that they believe that bankruptcy is their last option.
Whenever you look at your options, be sure you look at all of your options, including ones you don’t think you’d like, then pick the one that’s best for you. Be sure to “rise above the treeline” to see where each road goes. If can’t see yourself going all the way down a certain road, then should you even take one step in that direction?
Here is an alternative to filing bankruptcy that carries some risk:
Do Nothing.
This is not really an option you would choose; it’s a consequence when you have an income problem. Debt problems don’t go away all by themselves. Instead, they get bigger and change names. Sometimes it will lead to a lawsuit. Yes, you can be sued on an unsecured debt like an old credit card.
This certainly is NOT an option regarding secured debts, like a home loan or car loan, because if you want to keep your possessions, you must continue to pay for your possessions.
Although this option makes it impossible to start financial recovery, this can be a viable option for some people. If you are going to choose this option, then you need to seek counsel from a bankruptcy attorney in your area. You will likely be told that this option may be for people that meet these criteria:
- They don’t have a lot of cash in the bank,
- Their income is from VA Disability or Social Security,
- They do not own real estate that they want to leave to their family, and
- Their problem debts are credit card debts.
You may be asking “Why?” as to each of those criteria, and they should be directed to a bankruptcy attorney before you choose this option for handling a debt problem.
