It’s generally not my practice to tell someone whether or not I think they should file bankruptcy. That decision is one of the hardest and most personal they’ll ever make, and I’m not comfortable giving an opinion on that question. I’m sure divorce attorneys feel the same way when they’re asked by someone if they should get a divorce. What I will do, however, is tell them how bankruptcy will change their current financial situation.
I’ve written a lot about how bankruptcy will stop collectors from calling, foreclosure, garnishment, and other collection activity. But for my clients with children, there are other consequences.
My clients are people who are struggling to make ends meet. They’re finding it impossible to pay all of their debt and provide for their families. Bankruptcy can change that. Bankruptcy means being able to provide your family with the shelter, clothing, and food that you want to provide but have been unable to because of credit card debt and medical bills. Instead of making payments on high interest loans that you’ll never be able to pay down, you can put some of that money into an education fund. Instead of worrying about how you’re going to put food on the table, you’ll be able to start thinking about your children’s future. Instead of worrying about the never ending phone calls from bill collectors, you’ll be able to enjoy your time with your family.
Of course, there are some other consequences, especially for clients with older children who have moved out of their home. If you’ve co-signed a loan with a child, for a car, for example, bankruptcy has consequences that you should know about. As long as your child keeps paying the debt, she’ll be able to keep the car. If she defaults, the lender can repossess the car and sue her for any deficiency due after they re-sell it, but they won’t be able to pursue you to collect that debt. That loan will also be discharged in your bankruptcy. That doesn’t mean that you can’t help your child make payments so she can keep the car, it just means that you aren’t legally obligated to.
Bankruptcy isn’t for everyone, and it’s not always the best option. But for many, bankruptcy can be the best way to get a new financial start, for you and your family.
If you have questions about how bankruptcy can affect your family, we hope you’ll come in for a free, no-obligation consultation. You can schedule an appointment with a bankruptcy attorney online or call 303.331.3403.