07 Sep Bankruptcy Is About Tough Decisions.
Bankruptcy is about making tough decisions. If it was easy than everyone would do it and the law itself probably would not be effective. Bankruptcy is a give and take system. You what to take a discharge of your debt from creditors but in return you must generally give something. Whether it is attorney’s fees, time in going to court, giving of yourself to live on a budget or sometimes it is giving up an asset.
If you cannot afford your home or vehicle you might just have to surrender that asset in order to obtain your discharge. The court unfortunately is not going to care whether or not you have worked your entire lifetime to purchase a sports car or your dream home. The court and the creditor just want to know one thing. Can you afford to pay for your asset? If the answer is no then you may have to surrender that asset.
This decision is more prevalent today than at any other time in our history. With unemployment on the rise people cannot afford to live as they had in the past couple of decades. So if you are getting ready to file bankruptcy or even considering it, you must take a hard look at your assets and decide whether or not you can afford the lifestyle you are currently living or is it time to reset your priorities? It is critical for your financial and physical health that you set proper priorities. We are seeing a tremendous increase in medical debt for people from the stress of trying to keep their current pace of living. No vehicle, home, collectible or timeshare is ever worth losing your life, marriage or soul.
So yes, you may have to surrender a home or that sports car in order to have a successful bankruptcy. Yes, it may be a very tough decision and yes, it may be gut wrenching. However if at the end of the process you can emerge debt free, sleep through night, and/or stop fighting with your spouse or loved ones wouldn’t it be worth it?
Knowledge is power and the more knowledge you have about filing bankruptcy the more power you will to make a fully informed decision. A decision without surprises or gotchas when you go to court.