Should I file bankruptcy?

Yes, you should file.  If you have gotten to this page, odds are you should have filed bankruptcy long ago.  The biggest mistake people make about debt relief, is waiting too long. Folks continue to struggle, paying interest and penalties to banks and creditors who have already taken too much of their money.  This is the plan, to keep you paying interest and fees for the rest of your life.  When you start to struggle, there is a government program to help you.  Don’t let pride get in the way of doing the best thing for yourself and your family.  You will want to retire at some point.  Your family will need your help soon.  If you pay all of your money to creditors who don’t care about you, there will be none left for the things that matter.

Bankruptcy is a wonderful government program that allows you to keep all of the assets you need through bankruptcy exemptions.  Bankruptcy exemptions are quite simply property that is exempt from creditors and the bankruptcy process.  Bankruptcy exemptions are property you can keep no matter what.  The exemptions include all of your household goods, and large amounts of equity in secured assets like your home and your car, as long as you keep making the payments.  A vast majority of people who file bankruptcy keep all of their assets.  There is a basic misunderstanding that bankruptcy means you have to sell all of your property.  It simply is not true.

There is also a common misconception that you have to pay some of the debt back.  Not true.  Again, a vast majority of bankruptcy cases repay no debt.  Credit card debt, medical bills, even most income taxes are 100% discharged in bankruptcy.  You do not repay any of the debt.  One of the only ways you have to repay any debt is if you simply make too much money that it would not be fair for you not to repay any of the debt.  That happens in a very small percentage of cases.  Get rid of all of your debt, and keep all of your stuff.  What could be a better federal program than that.

The biggest question with bankruptcy is not how to do it, but if you should do it.  There is some moral compass that tells people they should repay their debt.  This may stem from Biblical times or a matter of personal discipline.  Whatever the motivation, this self-inflicted obligation is just not applicable to current times.  We are taught from youth that we should work hard to earn money to buy things that we don’t need.  We are beset on all sides with newer, bigger, faster, and better demands for our money.  When we capitulate to the bright lights and slick demands, we are offered money that we cannot afford to pay back in order to keep buying.  Then, when we finally realize we are unable to continue to live like humans if we keep living like they tell us we should, we are all of a sudden the bad guys for not being able to repay the debt that they knew we could not repay when they gave it to us.  Enough.  We are victims of big banks and a capitalist society.  We were duped into spending money they knew we could not repay.  After paying interest, penalties, and late fees for years, banks are making more money than ever.  If we still feel an obligation to repay their dirty money, we can send them a check after the bankruptcy is over, only this time, it will be on our terms.  We can pay them what we feel is fair, and not be threatened with lawsuits and shame if we don’t pay all we can.  If we still feel bad, send the creditors a check.  If not, assume they have already made enough money off of us and move on to things that really matter like taking care of yourself and your family.


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