Why File Bankruptcy?
Most people have a pretty clear idea why they might not want to file bankruptcy: they’ve heard that their credit will be ruined for life, that they will be fired from the job, that they won’t be able to obtain new employment, that they will never be able to finance a car or a new home again, that their reputations will be ruined … Visit our Bankruptcy Myths page for more on why these fears are largely unfounded.
The question that many people are actually in need of answer to is really, “What are the reasons to file bankruptcy?”
Bankruptcy is indeed sometimes a “last ditch resort,” the final option for people who are experiencing increasingly unmanageable debt difficulties. Sometimes, however, people can wait too long and try too hard to “avoid” bankruptcy. If you are depleting a retirement account in order to make ends meet or using one card to pay another, bankruptcy is likely something that you should take a good look at.
From a practical standpoint, however, why file bankruptcy?
- Stop wage and bank garnishments
- Stop a foreclosure of your home
- Stop Collector Harassment & Lawsuits
- Save your credit report & credit score
- Discharge Unmanageable Medical Debt
- Get Out of an Unaffordable Lease
- Simplify or Recover from a Divorce
- Discharge or Pay Off IRS or State Tax Debt at 0% Interest
- Cure Deficient Child & Spousal Support Payments
- Get back a vehicle that has been repossessed or seized
Bankruptcy is a legal, Constitutional, and moral process dating back through the US Constitution to the English Magna Carta, and further back to the Book of Deuteronomy, which decreed that debts should be forgiven every 7 years. The U.S. legal system provides the option of bankruptcy to you because you are more beneficial to our political and economic system if you have excess income with which to purchase goods and services than you are if you are sending every penny you earn to make enormous minimum credit card payments. As a country, we want you to feed and clothe and educate your children first and foremost—and that should be your priority as well, above and beyond the honorable obligation you may feel to “make good on your debts.”
If you are a Michigan resident considering suffering from any of the hardships listed here, contact us to schedule a free, initial consultation.
Don’t wait until you’ve already lost your home or drained your 401(k) to have a conversation about whether a Chapter 7 or Chapter 13 bankruptcy may be right for you.