Bankruptcy is not like drinking a cold milkshake. It’s not like lying on the beach, soaking up the sun. Or having a drink at the club with your friends. Bankruptcy isn’t for everyone or for every situation. And bankruptcy isn’t fun — it’s a very serious decision. Bankruptcy is the cure that ails you.
Bankruptcy is the cure that ails you
I’ll tell you what I mean. There are certain situations where bankruptcy is a “no-brainer,” as some might say. For instance, if you’re facing a ton of debt and have no feasible way to repay it (income below median for your state) then you are a great candidate for a Chapter 7 bankruptcy. If you have equity in your home and are facing foreclosure, that’s another no-brainer situation. You should probably file a Chapter 13 bankruptcy to stop the foreclosure. Then you have time either to arrange for repayment or to sell the property to capture the equity.
Other situations are not so clear-cut. Like if you’re above-median income or have just a single (large) creditor, or landlord-tenant disputes, or where you have partially unexempt assets. These are not circumstances in which it always makes sense to file a bankruptcy. Only a bankruptcy attorney can fully assess your situation and advise you to your rights and obligations.
So for some people, bankruptcy is the best, clearest choice, while for others it doesn’t make sense at all. Many cases fall somewhere between those groups of people, and sometimes it’s a really tough choice weighing the pros and cons.
But have no doubt: regardless of what group you fit into, bankruptcy is the cure that ails you. It will not be a particularly “fun” process, although Lee Legal attempts to make the process as stress-free as possible. And it will have serious ramifications for your credit history, and in some cases, for even your personal relationships. Declaring bankruptcy is not a decision to be made lightly.
Bankruptcy is the cure . . .
There is no reason at all to file a bankruptcy unless it’s going to fix the financial problems you’re facing. Bankruptcy cures tons of problems, from lawsuits and foreclosure to garnishment, repossession, and annoying creditor phone calls. The Bankruptcy Code, used correctly, solves many problems quickly.
. . . the cure that ails you
In most cases your credit will take a hit. And some employers may turn you down on the basis of your filing alone. In addition, a bankruptcy filing will stay on your credit for seven years (Chapter 13) to ten years (Chapter 7). Some people feel so embarrassed that their finances have gotten out of their control that they procrastinate and push off the inevitable, in turn making things even worse, another source of pain.
Bankruptcy may both help and hurt you at the same time, but Lee Legal helps clients to focus on the upside. Once you’re debt-free, how you choose to use your fresh start is up to you. And the advantages of filing bankruptcy often greatly outweigh any downside. Focus not on the negative aspects of bankruptcy, but on the many positive benefits to your credit in the long run.
The worst effects of the bankruptcy cure take place immediately after you file. But the positive effects to your credit take place over the long-term.