File bankruptcy or not?

Bankruptcy is a way to give people a “fresh start” after struggling with debt and can be done once every eight years. There are many myths of bankruptcy, for example, you will lose everything you own, bankruptcy hurts your credit for 10 years and you are a bad person for declaring bankruptcy. 
 

There are options to try to avoid bankruptcy on your own, according to bankruptcy lawyer Karen JM Mitchell, Esq. Exploring bankruptcy alternatives such as creating a budget for your realistic, monthly expenditures for current living, including mortgage and car payments, but exclude all other existing debt could be an option. 

With the money you have available each month after paying your current living expenses, can you pay off your existing debts at the current interest rates in three years? If the answer is yes, you might not need to file for bankruptcy.

If you cannot reduce expenses, increase income, negotiate rates or sell assets to make that possible, than bankruptcy may be a realistic opportunity for you.  Filing bankruptcy is nothing to be ashamed about.  The law is designed to give people a “fresh start”.  Think about where you will be in three to five years. If you continue to struggle to stay ahead of your debt, let alone pay it off, think about where you will be in the same period of time if that debt were gone, now.

Only a skilled bankruptcy attorney can help you decide which alternative is best for your particular situation. Don’t wait until you have lost everything to get the help you need.