By Joseph Devine -

The popular culture and overwhelming desire to live up to one’s financial obligations can — as noble as that goal is — tremendously complicate an individual, family, or organization’s efforts to eliminate debts and proceed in a more fiscally responsible manner. By creating the impression that the inability to meet payment schedules constitutes some sort of personal or moral failing, these cultural barriers can cause people to strain themselves physically, emotionally, and monetarily well beyond the point of reason. Though bankruptcy is not simply an easy out and should not be looked at as an escape valve at the first sign of financial distress, there are many circumstances under which it represents the best and most sensible option.

The reality is that the majority of those who are driven to consider bankruptcy end up in dire straits due to significant changes that are beyond their own control. These tend to be dramatic shifts in one or more areas of life, including divorce, the loss or reduction of employment, or affliction with a substantial physical or mental illness. It is important that you bear this in mind as a factor in your own financial struggles so that you do not judge yourself harshly and that you can maintain an accurate perspective on the appropriateness of bankruptcy in your present condition.

Signs and Choices

Knowing when the time has come to draw the line and to take the difficult emotional step of filing for bankruptcy protection depends on maintaining an awareness about the specifics of your debt situation. This means taking a long, hard, and honest look at the terms and rates of your varied repayment agreements and realistically determining how quickly you can pay the debt off on your own. In performing such calculations, it is essential that you take into account all the necessary and reasonable incidental expenses so that you can accurately project your capacity to make payments.

Then weigh the following signs that bankruptcy may be right for you:

• If you discover that your debt load is too high to pay off in a reasonable time frame
• You have many dependents
• Cash in accounts, including savings, is limited

A skilled and experienced bankruptcy attorney can help you to identify the best chapter under which to file for your particular debt distribution. Most likely you would file under:

• Chapter 7
• Chapter 11
• Chapter 12
• Chapter 13

For the Help You Need

If you are unsure what to do next, contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C.

Joseph Devine

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