Bankruptcy has a stigma for being a sign of defeat and a terrible stain on a business’ or individual’s credit history. However, bankruptcy is often the wisest economic decision a company or individual can make. The following are a few reasons to consider bankruptcy:
- Your debts are sending you deeper into debt. If the money you owe is preventing you from making other payments and causing you to accrue more debt, then bankruptcy may be the best idea. You will never be able to shake your debts without help, and bankruptcy can help you get a period of relief or a chance to make a fresh start.
- You can’t save up for retirement. In many cases, people in debt will dig into their retirement savings and anywhere else they have money to pay off their debts. If these measures still won’t cover all of your debt, consider bankruptcy. It’s unwise to set yourself up for future failures in an attempt to cover your debts now.
- You are facing a lawsuit. If your creditor is attempting to sue you for money that you don’t have, declare bankruptcy. You already can’t afford to pay your loans, and you certainly can’t afford the legal hassle that will result from a long court battle. Declare bankruptcy before your financial situation gets any worse.
- Failure to file will hurt others. If you have a family of your own or are trying to support elderly family members, bankruptcy may be the best answer – not only for yourself, but also for your loved ones. No matter what your objections may be, the wellbeing of your family should come first.
Do some research on your own and talk to a bankruptcy lawyer in Houston if you are in a dangerous financial position.