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When is bankruptcy the right option? | 5 signs

Financial_Surgery (1)For starters, do we even need to mention that bankruptcy isn’t for everyone?

Let’s get this out of the way first:  Nobody wants to file bankruptcy if they don’t have to.  Quite the contrary is true based on my personal observation as a bankruptcy attorney in Omaha for the last 24 plus years.  But, sometimes it is necessary to start over again.  So many people have worked very hard and sacrificed significantly and they shouldn’t let the hard economic times ruin the rest of their lives.

 

Bankruptcy is financial surgery.  Sometimes it is necessary.

The thought of “going under the knife” for a medical operation is just downright scary!  But how many people would avoid having life saving open heart surgery because of that fear?  Maybe more than we think, but the point is that there are times when drastic action is necessary to try and make your life better again.  And, sometimes that means a major “financial operation” is necessary.

 

5 signs that bankruptcy may be the right option:

  1. You cannot afford to make even minimum payments on your debts.
  2. Your are getting sued or garnished.
  3. Your house is going into foreclosure and you want to save it.
  4. A major change in your life, such as Divorce, Illness or loss of a significant job that, as a result, makes it extremely unlikely that you’ll be able to pay your debts off ever or for decades.
  5. Business failure.

The bankruptcy “doctor” has many different treatments available.

As in medicine, the law also has many different “treatments” available for distressed financial patients.  Over 50% of the time, surgery (or bankruptcy) is NOT necessary. Frequently, the cure is to take better care of your financial health and, little by little, things will get better.  Sensible financial health can be achieved and there are many good places that offer helpful information.  

When more aggressive treatment is necessary to regain financial health, the bankruptcy doctor is able to prescribe a Chapter 7 bankruptcy in cases where there is a lot of debt, very little income and few assets to lose.  In cases where the patient has some extra income to work with (but not enough to handle everything) and perhaps some assets to protect (home, car, etc), the bankruptcy doctor may prescribe a Chapter 13 bankruptcy.  The main point, however, always remains the same:  Regaining your financial health!

Get accurate information from experienced  professionals who really know what they are doing.

People that are financially hurting need a competent bankruptcy attorney to guide them through the process and to recommend the appropriate treatment.  No two cases are exactly alike and there is no substitute for experience and good advice.  When it comes to bankruptcy related matters, an attorney’s judgment and skill level are of utmost importance.  Preparing a bankruptcy case for a client is more than just “filling in the blank forms.”  Rather, it takes a deep understanding of how the bankruptcy laws work,what information is necessary and avoiding hidden traps.  With the right attorney on your side, bankruptcy is really not that scary after all.

 

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