If you’re anything like I was, you are not making the decision to file bankruptcy lightly. That was, by far, the hardest part of my bankruptcy. It was difficult to justify my reasons for bankruptcy because bankruptcy went against everything I’d been taught all my life.
It was a struggle, but once I conceded the fact that it was going to have to happen, like it or not, and stopped trying to think of an acceptable reason for bankruptcy, things got a whole lot easier.
First off, I’d like to remind you that your reasons to file bankruptcy are personal and you don’t need to justify them (or even explain them) to anyone. However, I do realize that you might be trying to justify your reasons to file for bankruptcy to yourself. That’s not necessary either but I get it.
Most people confuse the causes for bankruptcy with the reasons for bankruptcy.
Top Causes for Bankruptcy include:
· Medical Bills
· Job Loss
· Overwhelming Credit Card & Personal Loan Debt
· Poor Money Management Skills (I’m guilty of this but I’ve learned my lesson)
Top Reasons for Bankruptcy include:
· Receiving a fresh start. The bankruptcy laws expressly exist to give you a fresh start. You deserve to start fresh if you need to. If you didn’t, these laws would not exist.
· Getting the creditors off your back. Once you file for bankruptcy, an automatic stay goes into effect and your creditors may not contact you from that point forward. They may show up at your 341 hearing (more later about the 341) but you can stop that phone once and for all from that maddening ringing off the hook. Do you even have it on the hook? I didn’t. I couldn’t take it.
· Protecting your family by keeping your assets. You will need to discuss this with an attorney. I am not an attorney and nothing I write is intended to be legal advice....but for many people it is possible to keep essential assets through strategic planning.
It is important to plan your bankruptcy whether you have many assets or none. For tips on choosing the best bankruptcy attorney, visit Bankruptcy Attorney Tips.
Of course, there are good reasons not to file bankruptcy too. These include the facts that bankruptcy can have long-term negative effects on your credit rating, make it hard to find a job and make it hard to rent a place.
My credit was already screwed up, so my bankruptcy discharge actually helped my credit, but I live with the very real possibilities of not being able to find a good job or decent place to live somewhere in the future.
If you decide to start fresh by filing for bankruptcy, I wish you nothing but relief!!