Turner & O’Connell, Attorneys At Law

Serving Pennsylvania since 1984

When is it time to consider bankruptcy?

It is hard to imagine losing your job, suffering a medical emergency or dealing with other causes of massive debt. Unfortunately, people like yourself go through significant financial struggles every day. If you have found that you are struggling to make ends meet and can’t keep up with your payments, then it’s time to consider filing for bankruptcy.

While bankruptcy is sometimes viewed negatively by people who are trying to avoid it, the truth is that it is meant to give you an opportunity for a fresh start. It’s designed for people who have significant financial stress and who cannot continue on the same financial path without serious consequences, some of which may already be happening.

Should bankruptcy be the last-ditch effort to get out of debt?

Bankruptcy is usually the last thing people use to try to get out of debt, but it doesn’t necessarily need to be. For example, bankruptcy could be faster than trying to work with a debt-relief agency, and it may have the same intended outcome much sooner. If you have badly damaged your credit score already, then bankruptcy may be a good choice, since it may not do much to further reduce your score.

For most people, bankruptcy is the last option that is available. They may have already tried negotiating with their creditors, getting a second job, setting up payment plans or working with debt-relief programs. If those options don’t work or won’t work for your situation, then bankruptcy could be the right choice.

Bankruptcy could be the right answer for you right now

Once you’re missing payments regularly and are finding that you’re having a hard time meeting your daily expenses, bankruptcy could be the right solution. There are multiple types of bankruptcies that may be available, but Chapter 7 is the most common. With that type of bankruptcy, you may be able to have your unsecured debts totally discharged, helping you move forward in the future with a better financial outlook. Remember, you may need to go through credit counseling, which can also help you make a plan for a stronger financial future.