1. You Are Not Making Progress Long Term on Your Balances.
If you are making minimum payments only on your consumer debt and can not seem to make progress on the balances, a bankruptcy might make sense. This depends on the circumstances including the level of debt and the reasons you are not making progress. For some people making minimum payments on a $10,000 debt for a while may make sense. For others, those with a fixed income or those facing health challenges, that same $10,000 balance may be an unacceptable burden where bankruptcy makes all the sense in the world.
2. You Are Not Enjoying Life Long Term.
Having significant debt is very stressful. If your debt is such that over a long period of time, you face stress and unhappiness such that it effects your health, you might consider a bankruptcy. Many of my clients endured many years of stress before they made the decision to file. I have seen this stress ruin marriages and cause serious disease. I can honestly say I have never had a client who expected to file bankruptcy or who planned a bankruptcy. Conversely, I usually hear from people who are very relieved to have a fresh start, and wish they had considered the idea years earlier.
3. You Are Considering Using Home Equity or Retirement Funds to Pay Credit Cards.
This is almost always a bad idea, depending on the numbers involved and the age of the person. A thirty year old with 100s of thousands of retirement funds who can eliminate a $10,000 debt , where that is the person’s only debt, may want to do that. What I typically see however, is a much older person with a family using precious retirement funds or home equity to pay a debt off where that debt makes little difference to the overall picture. A person should definitely not use retirement funds or home equity to “buy time.”
4. Your Family Needs You to File In Order to Secure a Better Quality of Life.
People with children, elderly relatives or sick relatives often come to the conclusion that bankruptcy is the only way they will be able to continue to help a dependent.
The Overall Message From the Gauss Law Firm:
Bankruptcy is a very personal and contextual decision. It depends on many things. This is yet another reason I charge a fair rate for the expertise involved in filing a case. Most clients of mine get a free initial consultation where we take a serious and honest look at the necessity of filing. I do this for free because I don’t want to be one of those unfortunate lawyers who pressure their clients into a filing in order to earn fees. I have plenty of clients after 20 years, and I don’t need to “sell” you on something that isn’t right for you. If you would like a consultation please call 303-501-4028.