22 Jul When is Bankruptcy the Right Choice?
In today’s economic climate, an increasing number of people are discovering their incomes are no longer enough to pay for their debt and essential expenses. Hundreds of companies are outsourcing work and laying off workers every week.. not to mention ‘encouraging’ workers to resign from their jobs so that employers can avoid paying unemployment benefits. If you’ve been downsized, laid off, or forced to take a cut in pay, chances are good that you are struggling to make ends meet.
There comes a breaking point for most people when, after making every effort to keep the lights on and the repo man out of the driveway, they contemplate giving up and filing bankruptcy. Still, declaring personal insolvency is a touchy subject – for many people, it feels like a personal failure. But are there times when bankruptcy is the right choice?
In short, yes. If you have amassed a greater level of debt than you could pay off in a couple of years, either on your own or through creditor settlements, bankruptcy might be the right way out of your situation. Also, if you having trouble paying for essentials, such as groceries and utilities, because you are trying to keep your creditors at bay, it might be time to consider bankruptcy.
Another situation that might warrant personal bankruptcy is if you are in danger of losing your home or your car through repossession or foreclosure. Personal bankruptcy can help you save your vehicle or your house – you will still have to pay for them after the bankruptcy, but getting rid of your unsecured debt can give you the breathing room you need to make your mortgage and car payments.
Debt forgiveness has been around for thousands of years, even dating back to Biblical times. It’s never a good feeling to file bankruptcy, but it’s important to realize that throughout history, it has been recognized as a necessary element of society. It can give you the room you need to make a fresh start, and remain a productive member of society!
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