Surprisingly the answer is often impossible to know for sure. For some filing a bankruptcy is the only way to save a house about to be sold next week. For others the answer depends on whether or not their creditors will eventually sue and seize their property. Others see the light at the end of the tunnel if they can just get a job or compel their creditors to agree to a debt negotiation plan. Whatever your situation this article discusses some guiding principles I share with all my clients weighing their options.
As I mentioned earlier some clients come in and the question of whether to file clearly points to yes or no. One client wanted to file because she was being sued for $500 in small claims court. She did not have the money and simply wanted to file bankruptcy. After learning the bankruptcy filing fee was $335 and credit counseling fee was $42 she quickly saw the logic in not filing. Many others have come in owing more in credit card debt than they make in an entire year. Some clients don’t even know how much they owe. Everyone should run a free credit report once a year at www.annualcreditreport.com to monitor their credit and ensure they are not a victim of identity theft. One question I pose to everyone who asks me if they should file bankruptcy is the following: