Chapter 7 Bankruptcy: Is It For You?

If you’re drowning in a great deal of debt, you are probably looking for any kind of life preserver that will help you get back on your feet again. This is easier said than done, of course. There are shysters and illegitimate debt counseling services everywhere you look. Then there are the legitimate ones. Then there is bankruptcy, be it Chapter 7 or otherwise. Each individual case is different, however, which way there is no “one piece of advice fits all” scenario. On the other hand, there are some telltale markers that might indicate if filing for this type of bankruptcy will be the right choice for you.

Retirement is Around The Corner
The older you get, the more likely you will be able to benefit from filing Chapter 7 bankruptcy. Why is that? Because you only have so many years of working left in you. You don’t want to spend the rest of your life with this debt hanging over your head, and you don’t have much more time to spend trying to pay it off. Eventually, you have to throw your hands in the air and reach for a solution. Bankruptcy could be that solution that will let you retire in peace and not have to worry about that hanging cloud anymore.

You Have Many Dependents
No matter your age, if you have a lot of people depending on your income, Chapter 7 bankruptcy may be the way to go. When you’re single and can work endless hours and do odd jobs to make up that money, it is sometimes worth it to go that route. Particularly if you can avoid any credit trouble as you do it. But if you have hungry mouths to feed and college tuitions to save for, you need to get out from under debt payments that are barely making a dent in the principle. Bankruptcy is always a matter of last resort, but that doesn’t mean you need to wait until you’re homeless before you file.

Your Debt Is Astronomical
If your debt has climbed to the point where it is out of realistic reach, it’s time to consider filing for Chapter 7. Are you going to continue making minimum payments for the rest of your life? That would be absolutely foolish. Eventually, you have to take responsibility for the mistakes you’ve made or the misfortunes that have befallen you and make the decision that is going to allow you to move forward.

If you do choose to go ahead and file for Chapter 7, make sure you have a good lawyer by your side before you do so. Many an individual has attempted to wade into these heady waters by themselves, only to find that the system doesn’t want them there. Trust your filing to a professional and you’ll find the sailing is much smoother.