Can I Afford to File for Bankruptcy

Can I Afford to File Bankruptcy?

You’re in the position of seriously considering filing for bankruptcy, so the question should be, can you afford NOT to file for bankruptcy?

If you are attempting to pay off your debt and are not getting anywhere, bankruptcy may be your most affordable option. At the bankruptcy law firm of Gross & Patterson, LLC, in Pittsburgh, our lawyers offer a free initial consultation to evaluate your case and let you know how much it would cost to file bankruptcy. The cost to file bankruptcy may be about the same as a couple of your monthly credit card payments. Instead of having never ending payments to the credit card companies, once you file for bankruptcy your payments to these credit card companies will stop with the goal of having what is owed to them discharged.

Bankruptcy is one of the best deals available for consumers who have significant debt. Our attorneys have helped our clients get rid of tens of thousands to hundreds of thousands of dollars in unsecured debt. Bankruptcy also allows you to protect assets such as retirement savings, home equity (up to $45,950 for a married couple), and other personal assets.

Many people end up wasting money on stop-gap measures to pay off debts. However, if these measures don’t work (and they often don’t), you could end up in worse financial shape than when you started. Unless you are ready to commit to cleaning up your finances, they will often just get worse.

Here are some examples of stop-gap measures you can’t afford:

  • Taking out a second mortgage to pay credit card bills. When you do this, you are trading an unsecured debt for a secured debt. Credit card bills can most likely be discharged by filing bankruptcy. Second mortgages can only be discharged in certain circumstances.*
  • Dipping into retirement saving to pay debts. When you do this, you are losing assets that could be protected by filing bankruptcy. Don’t sell your future for protecting yourself today. There are better ways to get yourself out of debt quickly.
  • Borrowing money to pay debts. Borrowing from Peter to pay Paul is not a way to get out of debt. It often puts you further in debt because of outrageous rates that cause your debt to be larger by the end.

Rather than continuing to make payments on debt you can’t afford, the best way to improve your financial situation may be to file bankruptcy now. Stop the negative cycle in trying to keep your head above water financially. Filing bankruptcy eliminates debt and gives you a fresh financial start.

For More Information About Pennsylvania Bankruptcy Costs

To schedule a free initial attorney consultation to find out if you can afford to file bankruptcy, call 412-553-0140 or fill out the contact form on this website.

* Second mortgages can be discharged if you are underwater on your first mortgage and you file Chapter 13 bankruptcy. Even then, you may have to pay back a portion of the debt.