Personal Bankruptcy Is a Tough Call

Making the decision to declare personal bankruptcy is a tough one and one people do not take lightly.

Most likely, if you are seriously thinking about declaring personal bankruptcy, it took a lot to get you to that point. You have concerns about that appearing on your credit history and making a mess of your credit. It’s not like you “planned” to go bankrupt. It just snuck up on you as a series of incidents you weren’t expecting that made a significant change in your financial situation.

You may be faced with some astronomical medical bills, have been laid off work or are in the throes of a divorce. Bankruptcy is never an easy decision and it’s best that you know some things about the process before you make the final decision.

Declaring yourself bankrupt is a hassle and nothing will change that, but if you don’t do that, the hassle from the debt collectors could be even worse. While many people regard bankruptcy as a negative resolution to a problem, it may actually be considered a positive step towards clearing up your financial future.

Don’t be concerned about having a completely destroyed credit rating for the rest of your life. This is a myth. When you have cleared your bankruptcy, usually a 7 to 10 year process, your credit history is cleaned up and you may start all over again. Yes, it may seem like a long wait, however in the meantime you will have learned some valuable money management lessons and will be in a good position to re-establish your credit.

Many people also think that you can only file bankruptcy once in a lifetime. This is not the case either. You may file Chapter 13 every time you find yourself in need of doing so. If you are referring to a Chapter 7 bankruptcy, you would have to wait 8 years to file again should you find yourself in the same boat twice.

The idea behind filing personal bankruptcy is that it protects you (the debtor) from losing all of your possessions while working your way out of debt. This is one of the first things you and your bankruptcy attorney will discuss when you meet to talk about filing bankruptcy.

With the assistance of a competent bankruptcy attorney, filing for bankruptcy, while still difficult emotionally, is a made a lot easier by the solid advice you will receive from the lawyer. Your lawyer will be able to advise you every step of the way and make the whole process much less stressful.

Patrick Warwick is the lead content contributor for Chicago bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit