Is It Time to File for Bankruptcy?

Sometimes Bankruptcy is the Only Option

My husband and I have found ourselves in ever increasing debt. We make it week to week. Sometimes that is not possible.

We are considering bankruptcy. Is there any advice you can give us ?

We live in NC.

Are hospital bills accepted in claims of bankruptcy?

Kim

Hospital bills can be discharged in bankruptcy. Many experts feel that hospital and medical bills are the major reason most people file for bankruptcy in the first place.

If you have overwhelming debt, there are a few things you can try before filing.

You can try to earn more money or sell assets. You can try to cut out some expenses that you can live without.

You can try to renegotiate your debt by calling your creditors, telling them your only option is bankruptcy unless they can do something to help you out, like lowering your outstanding debt by half or more. You might have to have cash on hand to do this.

Otherwise, credit counseling is required before filing for bankruptcy. You are supposed to get a 90 minute session for $50.

At first these were group or phone sessions. However, I hope the rush caused by last year's bankruptcy reform act has passed by now, so you might be able to get personal face to face counseling that might actually help you out.

Find a Consumer Credit Counseling Services office in your area and try to get a private appointment with a counselor to see if he can help you.

Credit Yourself has many applicable articles in the Credit Counseling, Bankruptcy and Financial Planning sections of the site.

If all else fails, file for bankruptcy. It was designed to help people in your situation and give them a "fresh start."

The relief you will feel once you get the financial pressure out of your life will be worth the inconvenience and breach of privacy you will have to go through.

For a consultation with a local bankruptcy attorney, click here.