No one wants to file for bankruptcy. I know it and so do you. I read the scathing comments about good people who struggle with debt and their perceived “moral” obligation to repay their debts. I also enjoy watching Jimmy Fallon (@jimmyfallon) and his humorous Pros and Cons segement each week. So, here are my Pros and Cons of filing for bankruptcy.
Pros of filing for bankruptcy
- You get out of debt quickly (4-6 months for Chapter 7; up to 5 years for Chapter 13), saving valuable TIME;
- Stop wage garnishment; stop foreclosure; stop lawsuits; and all harassing debt collectors;
- Save money by paying less toward your debts and more toward your financial future (retirement, home ownership, college)
Cons of filing for bankruptcy
- Your credit will be ruined; check out this article
- You will lose your car, house, or boat; read this
- You’re looking for the secret trick to get out of debt
- Your family/friends have told you not to do it
- You haven’t cashed out your life insurance; or retirement plans yet!
What ever your motivation for getting out of debt, the process you choose to get you to your goal will cost you time and money. What if you could eliminate your debt today and start saving for your future immediately? What would you do then?