• 25
  • August
    2010

In our last two posts, we discussed some of the questions you might want to ask yourself before choosing bankruptcy as the means of dealing with your financial problems. In this post, we will wrap up that discussion with a few more points to think over when deciding if a Chapter 7 bankruptcy or a Chapter 13 bankruptcy is the right option for you.

Do I have any other good options? While bankruptcy is not as scary or damaging as some might have you believe, you may want to look around to make sure you wouldn't be more comfortable with other options first. If your mortgage is one of the debts causing your financial hardship, you may want to explore ways of alleviating that problem through a mortgage modification, a refinancing, or even a short sale of your home.

If other debts are the cause of your troubles, you may want to see if your creditors are willing to work out some sort of arrangement that will allow you to pay your debts without having to utilize bankruptcy. However, you may want to work with an attorney or other professional to make sure your rights are protected if you enter into a payment plan or some sort of debt counseling program.

How do I feel about walking away from my debts? One thing that many people overlook is the sense of guilt or disappointment some have about filing for bankruptcy. Of course, you don't have to feel guilty about using the legal process of bankruptcy, but you may want to consider how it will make you feel before you act. If you have some reservations, a Chapter 13 bankruptcy might be right for you because it requires paying back at least a portion of your debts, rather than walking away from them altogether.

Am I going to be better off after bankruptcy? Bankruptcy presents a chance to start over. However, if you don't take advantage of that opportunity, you may find yourself right back in the same place. One of the things you should ask yourself is whether you could do things differently to prevent falling into a financial hole again. Since there is a limit to how often you can file for bankruptcy, you need to be sure that it will make a lasting difference in your situation.

Hopefully these last few posts have helped you think about what bankruptcy can do for you. If you are still not sure what option might work the best for you, speaking with an attorney may help you better evaluate your options.

Related Resources: Is bankruptcy right for you?