This is a website dedicated to giving the public the straight scoop on bankruptcy from the perspective of a bankruptcy lawyer.
There are a lot of websites out there loaded with misinformation. If you do an internet search on “bankruptcy” you will find lots of sites that try to tell you that bankruptcy is a terrible option. Those websites are almost all funded by: (i) someone selling scammy debt counselling service that is an alternative to bankrupcy (and generally an inferior alternative), or (ii) a bank or credit card company, or (iii) a non-profit entity with a name like “Americans for Responsible Finances” that is funded covertly by banks or credit card companies.
Make no mistake, bankruptcy is a great option. Chapter 7 bankruptcy in particular is wonderful for many people because it discharges their debts, gives them a fresh start, and lets them start saving for retirement. Laboring under debts that you can never repay is a recipe for depression and hopelessness. Do yourself the favor of at least meeting with a bankruptcy attorney and hearing what they have to say.
This website is also dedicated to the idea of being strategic about approaching bankruptcy.
There are many ways to be strategic about whether, when, and how to file bankruptcy, but the biggest factor is probably timing. It is possible to file bankruptcy too soon. For example, you would not want to file when you are still in the financial doldrums and likely to incur more debt before you can get y your situation resolved. On the other hand, it is possible to file too late. I’ve had clients come to me that are 60 years old, and have been working two jobs for the past decade to try to pay off their debts. And they have often taken out a loan against their house, or cashed in a 401k plan. They would have been better off filing bankruptcy 10 years prior and saving their house, saving their 401k , and getting back to saving for retirement instead of servicing debt that they really had no chance of ever repaying.