Should I File for Bankruptcy to Get Rid of My Debt?

Question:

Dear Steve,

Should I file for bankruptcy? I’m making 60k a year and have about 35k in debt, in which I’ve been making minimum payments for the last 14 months. It feels like I’m getting nowhere. This debt seems like it would never clear.

Please advise.

Bee

Thank you

Answer:

Dear Bee,

The honest answer is, maybe.

There are several things to consider before you can determine if bankruptcy is right for you. Every situation is different.

Ultimately what we have here is a math problem. Can you continue to meet your monthly obligations and still make debt payments and save for retirement at the same time.

Here are some resources to read.

Those That File Bankruptcy Do Better Than Those That Don’t

Why People Make Poor Decisions When They Have Money Troubles and Debt Problems

What Repaying Your Debt Will Cost You in Retirement – Calculator

How to Know if You Should File Bankruptcy

So You Are Going to File Bankruptcy. That’s Great News. Congratulations.

You should also find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.

The amount of your debt is not a determining factor to decide if bankruptcy makes sense. For me, I think it is more important to fix your future so you can make ends meet, build an emergency savings account, save for retirement, and do better moving forward.

Sincerly,


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.