Bankruptcy can be a fantastic tool for those who need it, but it is not a one-size-fits-all solution. Our team of bankruptcy attorneys has helped thousands of people file bankruptcy and fix their debt issues, but we still acknowledge that the process may not be the best solution for everyone. Today, we will discuss who should wait before pulling the trigger on bankruptcy or perhaps consider another solution entirely.

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Who Shouldn’t File for Bankruptcy

People with The Financial Ability to Pay Off Their Debts: While bankruptcy is a valid solution, it shouldn’t be considered lightly and should only be used as a last resort. Reluctance to pay your bills or dedicate yourself to a repayment plan is not a good reason to consider bankruptcy. If you are able to make payments, you should definitely do so. Filing for bankruptcy means you will have to open up your finances, and you will not be accepted if you cannot prove to the court that your current debt obligations are too much to cover with your current income and assets.

People Who Want to Maintain Good Credit Scores: Many people spend years of their lives carefully spending in order to build credit, but one bankruptcy can ruin all of that hard work. Years and years of struggling with credit card debt can hurt your credit score as well, but bankruptcy will be an enormous, one-time hit to your overall score. Finding a way to pay off your debts without bankruptcy will be better in the long run, assuming you don’t file for bankruptcy later. In simple terms, bankruptcy should not be seen as an easy way out of debt if other options are available. However, should bankruptcy be necessary, there are ways to repair your credit scores over time.

People with Non-Dischargeable Debt: This may seem obvious, but you should only consider and start bankruptcy proceedings if your debts qualify to be discharged through bankruptcy. Many types of debts, such as taxes and college loans, cannot be discharged. You may have ways to restructure these payments, but the underlying amount owed is often hard to get rid of. If you are unsure of your options regarding nondischargeable debt, contact a bankruptcy attorney to learn more.

People Who Haven’t First Contacted Their Creditors: As we often say, bankruptcy should be one of the last options you consider getting your financial situation back on track. If you have not attempted to contact your lenders and devise a plan, you shouldn’t be considering bankruptcy. Reaching out to lenders may allow you to lower monthly payments or even your total amount owed without forcing either side to continue with any legal proceedings or bankruptcies.

People Who Want Their Information to Remain Private: Bankruptcy will likely be a significant life event. If you are at all concerned about what others may think about filing for bankruptcy, understand that filing for bankruptcy is a public process, and some information will be visible to the general public. While we don’t think this fact should discourage you from seeking debt relief through bankruptcy, it may factor into your overall decision.

Every situation is unique, and it may not be immediately clear if bankruptcy is appropriate for you. If you are considering personal bankruptcy as a remedy to your financial challenges, call our offices. We will be happy to evaluate your situation and guide you towards your best options.

Richard V. Ellis is an established bankruptcy attorney with decades of experience helping Florida residents file for bankruptcy. Contact us today to get started and find relief from your debt.