Friday, June 5, 2009

Considerations Surrounding Filing For Bankruptcy

By Jon Arnold

If you are considering filing for bankruptcy, you should weigh your options carefully before actually making this decision. Now, some may scoff at such a notion since time is certainly not something individuals in dire financial straits may have much of. When debts are out of control and creditors are calling in a seemingly endless fashion, it would seem bankruptcy would be the proper quick fix. Actually, it is not at all a quick fix as bankruptcy remains a very complex legal process that is certainly not for those unprepared for it.

There are those that may believe bankruptcy is a "do-it-yourself" process that can be handled in a relatively easy manner. At one point, this was the case but abuse of bankruptcy filings led to the passage of much stricter bankruptcy laws. As a result, it is a much more complex process than it had been in the past. Additionally, bankruptcy is not filed on the federal level and this means your particular state may have tougher requirements than what might exist elsewhere. In fact, nowadays you must be approved to file, and there is no guarantee that you will even be approved to file!

Of course, the easiest way to circumvent dealing with all these complex issues would be to hire a bankruptcy lawyer. This means you will now be responsible for paying legal fees associated with the bankruptcy filing. Obviously, this could further drain your finances if the proceedings drag on and on. But, if you have no other options, you really do not have a choice do you? Well, when it comes to filing for bankruptcy, how do you know you do not have other options available? Often, even people that are in extremely serious financial difficulty have options available to them that could help them get out of debt in a much more efficient and less stressful manner than filing for bankruptcy. That is why it is helpful to undergo a bankruptcy evaluation prior to making any decisions to file.

A bankruptcy evaluation will look at your current financial situation and compare various other factors in regards to your net worth. From this, a clear opinion can be raised as to whether or not bankruptcy is the right option. If it is, then so be it. If it is not, then there is clearly no reason to engage in the long and complicated process of bankruptcy when a much better alternative would present a much better conclusion to the problem.

What are some of these better options? There are many and some are much easier than most would assume. For example, a debt consolidation loan may be enough to create breathing room for someone to get into better financial shape. In fact, even something as simple as lowering a minimum monthly payment may be all that is necessary. And, in serious situations, exploring the options available through a debt settlement offer is a viable alternative. Ultimately, the strategy you take will be based upon you own unique, individual situation.

The moral here is that filing for bankruptcy should never be the first priority for anyone in debt. Instead, it is best to explore all available options and arrive at the best possible decision.

For more insights and additional information about Filing For Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your local area, please visit our web site at

Article Source:

No comments:

Post a Comment