When should someone consider personal bankruptcy?

For people dealing with mountains of debt, bankruptcy can seem like a reasonable option. However, it is important that Connecticut individuals considering personal bankruptcy understand the legal, financial and personal implications of taking this step. There are many misconceptions about bankruptcy, so education is critical for anyone considering this step.

One of the more confusing issues around personal bankruptcy is exactly when it is the best option. Some people believe that a high amount of debt is good reason to consider bankruptcy, but really there are other circumstances that also may contribute to this decision. Bankruptcy is not about volume of debt so much as it is about the ability to work out of those debts. Many people have the means to handle the debt without taking this step, so they can consider alternatives.

With that being said, bankruptcy may be the right move for some Connecticut individuals. The only way to know for sure is to speak with experts who are familiar with bankruptcy law and financial regulations. Considering all options before settling on this serious step will help prevent future regret and unexpected consequences.

People facing a great deal of debt may make rash or unwise decisions if they try to face difficult financial decisions alone. Additionally, friends and family may have misconceptions about personal bankruptcy, so relying on their advice is not always the best idea. Instead, speaking with both creditors and a credit counsellor are possible steps. Additionally, working with a lawyer to navigate the legal steps around personal bankruptcy is a good idea.

Source: daytondailynews.com, “Ask Clark: When should I declare bankruptcy?”, Craig Johnson, March 14, 2018