Considering how to escape a financial dead-end? Choosing bankruptcy may be your obvious solution.
If you cannot repay debts as you pay for your day to day expenses, bankruptcy is something to be considered sooner rather than later. Contrary to popular opinion, bankruptcy isn’t the end of the world. Depending on your situation, it may even be good for you. It’s certainly better for peace of mind as it stops collection calls, lawsuits and wage garnishments. Your debt is eliminated and may even help your credit scores.
If you don’t qualify for a Chapter 7, a Chapter 13 requires a three to five-year repayment plan, which most people don’t complete. (Half of Chapter 13s filed between 2007 and 2013 were dismissed, and an additional 12 percent were converted to Chapter 7s or other types of bankruptcy, according to an American Bankruptcy Institute analysis of Justice Department figures.)
One piece of advise is certain: Don’t wait too long to learn more about your bankruptcy (and other) options. The first place to start is to read Liz Weston’s (of Nerdwallet.com) entire article, When Bankruptcy is the Best Option.