Is Bankruptcy Right For Me?

There are times when it seems like every time you get a little ahead, something happens and you take three steps backwards.  The bills start to get overwhelming and you can’t pay everyone.  You start to ignore phone calls and get anxious opening the mail.  You may be wondering if you should continue to try to pay what you can, or if filing for bankruptcy is the right option for you.

The decision to file for bankruptcy is a difficult and emotional one. However, if you qualify to file for Chapter 7 Bankruptcy, it is almost always the right decision for you and your family’s future. In more than 27 years of helping people achieve a brighter financial future with the help of bankruptcy laws, I have never had one client tell me it was the wrong decision.

If you are concerned that Bankruptcy will ruin your credit for the next 10 years, consider this:

• Making only minimum payments on your credit cards can take 30 years and longer to pay off. Far more than 10 years.
• Late Payments will also be reported on your credit reports and could be worse for your credit rating than a bankruptcy discharge.
• If you qualify to file chapter 7 Bankruptcy, you probably have a poor credit rating already, and if you only make the minimum payments or miss payments, you can’t obtain new credit for years.
• If you otherwise qualify, you can obtain an FHA mortgage at going rates just 2 years after a Bankruptcy discharge. There are other mortgage programs that are available even sooner.
• We also advise you on ways to rebuild your credit. We have clients who improve their FICO scores by 100 points in the first year after filing.

There are reasons that we have Federal and State laws allowing people to obtain a fresh start. It can take decades of financial suffering to get back to a reasonable quality of life. For some people that day never comes. Late fees, missed payment charges and high interest rates can quickly exceed the original debt. Bankruptcy laws provide you with financial freedom that significantly improves the quality of your family’s lives. It relieves the stress that can take its toll on you physically and in your relationships.

Bankruptcy is not guaranteed.  There are strict criteria that have to be met in order to qualify for a bankruptcy discharge.  Prior to October 17, 2005, it was largely up to a bankruptcy judge to decide whether a debtor met bankruptcy requirements. Judges, therefore, could use substantial discretion when assessing the debtor’s financial situation. As a result, under the old law, most filers chose to have debt discharged through Chapter 7 bankruptcy even if they were financially capable of repaying the debt in a Chapter 13 repayment plan. Consequently, the intent of current bankruptcy law is to weed out filers who can afford to repay some debt.

If you are struggling to pay your rent or mortgage and household bills, because of credit card payments, medical bills and other debt, it is time to have a proper and complete evaluation of your finances. At Bellenot & Boufford LLC we look at all sources of income and all your expenses. If there are non-bankruptcy alternatives available, we will discuss each of those with you. We will explain the benefits and pitfalls of all available options, including bankruptcy.

The importance of having your finances evaluated as quickly as possible cannot be overstated. Options that may be available today, may not be available next month. If it turns out that you eventually will file bankruptcy, money you spend getting by until then is lost forever. Are you properly prioritizing who you pay and when? Never use retirement money to get by without a consultation with an experienced Bankruptcy attorney.

Serving Danbury, Connecticut and all of Fairfield and New Haven Counties.