Filing For Bankruptcy: When is Bankruptcy the Right Choice? by Jay S. Fleischman, Esq.

In this economy, more and more people are finding that their incomes are no longer enough to take care of their monthly expenses. We hear news of hundreds of companies laying off workers every week.. and this doesn't take into account the workers who are "encouraged" to resign from their jobs so that employers don't have to pay unemployment benefits. If you've lost your job, taken a pay cut, or been forced to reduce your hours on the job, there's a good chance that your credit is suffering.

There comes a breaking point for most people when, after making every effort to keep the lights on and the repo man out of the driveway, they contemplate giving up and filing bankruptcy. Still, declaring personal insolvency is a touchy subject - for many people, it feels like a personal failure.

But are there times when bankruptcy is the right choice?

In short, yes. If you have accumulated more debt than you could pay off in two years, either on your own or through settlements with your creditors, bankruptcy might be your only real option. Also, if you are paying so much in debt payments that it becomes difficult to find enough money for the essentials, such as groceries and utilities, it might be time to consider bankruptcy.

Another situation that might warrant personal bankruptcy is if you are in danger of losing your home or your car through repossession or foreclosure. Personal bankruptcy can help you save your vehicle or your house - you will still have to pay for them after the bankruptcy, but getting rid of your unsecured debt can give you the breathing room you need to make your mortgage and car payments.

Debt forgiveness has been around for thousands of years, even dating back to Biblical times. It's never a good feeling to file bankruptcy, but it's important to realize that throughout history, it has been recognized as a necessary element of society. It can give you the room you need to make a fresh start, and remain a productive member of society!