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Weighing the pros and cons of filing for bankruptcy

Most people will make quite a few decisions as adults that they would probably consider to be life-changing. Getting married, buying a home and having children are all huge steps in life, steps that the majority of Americans make. And, as a recent article alluded to, the decision on whether or not to file for bankruptcy can be just as big a decision as all the others.

Every year millions of Americans face financial challenges. Even with the economy improving, there are too many people who have to face the fear and doubt that comes with owing too much money to too many lenders. But, this is where bankruptcy can come into play as a way to eliminate debt and get a fresh start.

The recent article noted the many questions people need to ask themselves as they begin to weigh the pros and cons of filing for bankruptcy. Do you feel like you are just barely scraping by with your finances? Do you find yourself paying only the minimum payments on credit card statements? Do you have trouble even calculating exactly how much you owe?

With a personal bankruptcy action, whether it is Chapter 7 or Chapter 13, the main goal is almost always debt relief. However, there are other "pros" to consider as well, such as the fact that filing for bankruptcy could help prevent foreclosure, as well as putting an end to all of those pesky collection calls. There are "cons" to consider as well and, ultimately, the decision will come down to the unique details of a person's financial situation.

Source: Forbes, "What Your Lawyers Don't Tell You About Bankruptcy," Neale Godfrey, Aug. 16, 2015

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