Is Bankruptcy the Right Decision #5
By Cathy Moran, California bankruptcy lawyer on May 16, 2007 in Bankruptcy Practice and Procedure, General Bankruptcy Information
Families struggle with the idea of filing bankruptcy and ask my opinion about whether this is the “right” option for them. One of the factors that is decisive in my analysis is whether they have debt that isn’t dischargeable in bankruptcy. If so, the odds are increased that filing bankruptcy to eliminate the dischargeable debt is the right move.
Too often, clients are greasing the squeaky wheel: paying the insistent unsecured, dischargeable credit card debt while they owe taxes, support or student loans that have protection from discharge in bankruptcy. The creditor with the weakest claim on the family money is getting paid because that is the creditor on the phone, with the threats of some sort of collection hell if the client doesn’t pay.
Bankruptcy will allow that family relief from the less important, dischargeable debts so that they can focus on paying those debts that will follow them regardless. In other words, bankruptcy frees them up to do the right thing.
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