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When should you consider bankruptcy? It is really up to you.

On Behalf of | Aug 5, 2020 | Bankruptcy

With the way things are currently going in many communities throughout the entire country, you may discover that your family’s finances are strained. Your household is down to one consistent wage earner. You still work but your spouse – active in the gig economy – has one client left for her graphic design business. In addition, you have two children, one of whom needs glasses and the other who has ongoing health issues.

On top of that, you have a spending habit that leads to purchases of things you want, but do not need. The financial challenges mount, and you realize that personal bankruptcy is an option.

Getting you back on track

People delay filing for bankruptcy for a number of reasons. They may think a solution is just around the corner, or they feel ashamed of a stigma that, when you look at it closely, really is not a stigma. But when is the right time to file for bankruptcy? There is no single answer.

The real decision is up to you, and, typically comes about when you have exhausted all potential solutions, including borrowing money from family and friends, restructuring your mortgage and selling as many of your personal possessions as possible. You may find out that any of these combinations will not always let you avoid bankruptcy.

Sometimes, people in financial dire straits overlook the obvious, not even realizing that filing for personal bankruptcy is the solution. The bankruptcy route should be considered as an ally rather than an adversary. Such an option can help you get back on track financially. However, it will not be easy as you and your family must do some belt-tightening, limit spending and work on a plan.