Is Bankruptcy Right for You? Staying afloat in today’s difficult and competitive financial world can be extremely challenging.

Often times we run into obstacles that are simply insurmountable and

cause us to fall flat on our financial faces. When faced with a situation

like this, you may need to consider taking drastic measures to fix the

problem. Bankruptcy is one of these drastic measures available to you

in times of financial hardship. Many people wonder when they should

consider filing for bankruptcy or if they even qualify. This article is

aimed at helping you make an intelligent and informed decision.

Life’s Tough Obstacles First, let’s discuss the problems in life that can lead one to file for bankruptcy. The causes are

numerous, but there are some that are more common than others. You may be faced with a long

period of unemployment which has crippled you financially. You may be going through costly

medical procedures or even struggling with marital problems. For some people, debt levels just

get out of hand. Ask yourself if you feel afraid of sorting out your finances. Are you afraid of

finding out just how much you are in debt? Are you stuck making minimum payments on credit

cards or even missing payments? Do you often use your credit card to purchase necessities? If

you answered yes to these questions, you may want to consider bankruptcy.

Determine your Asset and Debt Levels Total up all of your assets. This is basically everything that you have that is worth something. It

includes your bank account amounts, retirement funds, stocks, bonds, real estate investments and

vehicle values. Then, compare that number to the amount of debt you owe. If the debt you owe is

more than the amount of assets, you may want to consider filing bankruptcy. This may be your

only way out of a problematic financial problem.

Educate Yourself There are different types of bankruptcy that

you can file. Chapter 7 bankruptcy is

different than chapter 13 bankruptcy. If you

choose to file a chapter 7, your assets will

be liquidated and distributed to the various

creditors that you owe. A chapter 13

bankruptcy is, more or less, a grace period.

It gives you a certain period of time to repay

your debts. Go online and research which

type will better suit your individual

situation. Remember that this is a scary and

difficult time for anybody but sometimes

these sorts of things are necessary.

How to Declare Bankruptcy You cannot just shout out, “I declare bankruptcy!” You have to either fill out the proper

paperwork or wait for your creditors to get fed up and ask a judge to mandate bankruptcy upon

you. There are pros and cons to each route so do your research! The most common way is to file

for bankruptcy, but your situation may necessitate the alternative. Speak with financial experts

and lawyers as they know the ins and outs of these situations. In the end, you just have to have

courage that everything will get better.