Considering bankruptcy? Follow these 4 tips
Most of our clients come to us, struggling with massive debts that have spun out of control. One unforeseen bump in the road (a sudden job loss, an accident, a medical condition) is all it takes to send most families into a downward debt spiral. We have shared lots of tips in the past for avoiding debt, but it is also important to get advice from a financial advisor or bankruptcy attorney before you decide to file.
According to John Rao, a bankruptcy attorney with a Boston-based consumer advocacy group, you should “first explore opportunities to resolve problems outside of bankruptcy. Bankruptcy isn’t going to help everyone.”
Typically, you will want to consider bankruptcy if:
- Most of your debt is “unsecured” (such as credit card bills or medical bills)
- You are hounded by calls from collection agencies at home and at work
- You have had wages garnished or your bank account frozen after a judgement
- You have been sued