The thought of filing bankruptcy is a devastating one.  Even considering it brings with it a whole host of emotions and feelings, including shame, embarrassment and failure.  Though it may seem the entire world is crumbling around you, it isn't. The truth is, that many have the same problems, they just don't talk about it.   If you feel like you will never make it out of the hole you are in, you need to figure out if it is even realistic to dig yourself out, or if you just need to start over.

It is often misconceived that those who file bankruptcy are reckless, irresponsible freeloaders who just want to spend money and not pay for it.  Most of the time, this is entirely untrue.   There are several reasons you can end up overwhelmed by your debt:  failed personal business, hospital bills, defending reckless lawsuits, unemployment, child custody issues, creditors increasing your interest rates and fees, bad mortgages (yes, loan officers lie and take advantage of naive people), identity theft, etc.    You may have gotten into debt thinking you were going to be able to pay it off, and they found yourself much shorter on income than you ever imagined.  The bottom line is, if you are being suffocated and consumed by your debt, and you can't see the light at the end of the tunnel, it is probably time to consider bankruptcy.

Even for a moderately responsible person, knowing that you may have to file bankruptcy is very hard to take.  Most who have lost control of their debt will likely go through the five stages of loss, much like when you lose a loved one:  denial, anger, bargaining, depression, and acceptance.  Though I have found that the stages are not necessarily in that order (sometimes depression finds its way in different places when it comes to debt), it is inevitable that you will end up with acceptance.  At this point, you will realize that needing to file bankruptcy will not ruin you, and it cannot destroy who you are as a person.   Additionally, though credit collectors would have you think otherwise, you cannot go to "debtors prison", your credit score is not worth more than your sanity,  and if you file bankruptcy, you are usually able to keep your home and much of the stuff you need to live in it -- including a car to get to work in.

Bankruptcy is not something to take lightly, but it was put in place by our government as a method of starting over.   Let's face it, if you are reading this article, you are probably in a bad position already, and you know that creditors aren't always the most helpful in assisting you with a solution.  Take a step back from the emotion of it all and look at your situation realistically.   Do you need to file bankruptcy?  If you do, putting off the inevitable will only prolong your agony.  Do yourself and your family a favor -- decide on your course of action, implement it, accept the consequences and learn from your mistakes.   You will be a happier and better person at the end of it all and, after all the drama and heartache, you may even be able to help others with your experiences.

Talk to a professional and see what solution is best for you.   

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