The decision to file bankruptcy, whether it’s Chapter 7 bankruptcy or Chapter 13 bankruptcy, is an emotionally difficult one. People often struggle with it for “many months or even years I think it’s particularly hard because of optimism…we think if we can hang on just a little bit longer, our financial situation will get better. Occasionally it does. If that’s the case for you, then you don’t need me for debt relief services. Bankruptcy should be a last resort and it usually is for most people…often too much of a last resort.
What happens when things don’t get better? People wait too long to do something effective about their debt. They just end up prolonging the inevitable and at a very high cost. Many people who meet me go through any savings, cash out their retirement, borrow from friends and family, avoid calls, lose sleep and are stressed. Now they don’t have any retirement savings, regular savings, and have burned bridges with friends and family AND they still need a bankruptcy.
Wouldn’t it be better to find out your options before you do other drastic things? For example, when someone cashes out their retirement account, they have tax consequences ANDthey don’t have the retirement savings they need when it’s time to actually retire. ERISA qualified plans are completely protected through bankruptcy in Ohio as are PERS andOPERS. You do not lose them when filing a bankruptcy.
People also meet with me knowing that they need a bankruptcy but take several years to come to terms with it. The time spent on the emotional struggle is a waste. This might sound harsh, but it is true. The longer the time between meeting with me and filing is time that could have been used to rebuild instead of wrestling with feelings of guilt and defeat. You can earn more money, make better budget choices and invest again but you can’t get more time. Don’t waste it.
Pull the emotion out of this. Analyze your finances. Get good information from a reputable bankruptcy attorney.
Decide. File. Close that chapter and move on.