There are several indicators that its is a good idea to declare bankruptcy. Why declare bankruptcy? For example when you’re paying for every day necessities with a credit card, your interest rates are rising because of missed payments, one credit card is paying off debt of another credit card, you have multiple jobs and it still isn’t taking care of your debt, your wages are going to be garnished, you’re considering taking money from retirement accounts, etc. Any of the above situations indicate that bankruptcy might be in your best interest if you are unable to pay off debts in any other way. It will legally free you from financial stress.
Why declare Bankruptcy
Bankruptcy can be considered a failure in the eyes of some in today’s society. People tend to think of bankruptcy as a complete failure and completely giving up yourself to your creditors. That isn’t true though, bankruptcy is a chance at a fresh financial start. Studies have shown that people who are financially struggling that file for bankruptcy end up being more successful than those who run away from or avoid filing for bankruptcy when they should probably file.
Why bankruptcy is smart
Bankruptcy may feel like a failure to you or to your business, but it can be an opportunity and a good strategic move. Bankruptcy can be in your favor, not necessarily right away but in the long run it can prove to be an advantage for you. It can buy you and save you time, you can get rid of your debt, and it will help you reinvent yourself or your business if you have no other options. It is smart when bankruptcy makes sense and you have already tried to negotiate your repayment plans. When your liabilities exceed your assets it also might be smart to consider filing for a bankruptcy. To be sure this decision isn’t without consequences, it can help a lot in the long run if you need a fresh start. You really need to speak with an experienced bankruptcy lawyer to see if it right for your particular situation.