Is your financial situation so bad that you’re thinking of filing for bankruptcy? Well, you may want to think this over carefully before making such a decision. According to financial experts, declaration of bankruptcy should be made the last recourse. Exhaust all other options before deciding on this.
Impact of Filing for Bankruptcy
Once you have declared bankruptcy, you may have a hard time getting any type of credit. This will also affect your credit score. And of course, there’s the mental and emotional impact of knowing you’re bankrupt. Explore all other options, such as talking to creditors or getting credit counseling.
Need to File Bankruptcy
The time may come that the only option left for you is to declare bankruptcy. Bankruptcy lawyers from Utah’s Christensen Young and Associates say these situations justify your decision to file:
- Negotiations Have Failed. You may have no other option if negotiations with your creditors have failed. They may have taken a firm stance not to accept any repayment plan. They may insist on getting payment immediately. Even the efforts of your credit counselors may prove to be unsuccessful. This leaves you with no choice but to declare bankruptcy.
- Liabilities Far Exceed Assets. Even with the most favorable outlook, your assets may not be enough to meet your obligations. Disposing of these assets may still leave a substantial liability. It may simply be impossible to meet all your obligations even if you land the most lucrative job.
Remember that there’s still life after bankruptcy. So many people were able to rise successfully after going through this serious challenge. What’s important is to learn from the experience and make sure you manage your finances better.