Bankruptcy--What It Means and How To Do It

We live in a world where facts are fluid and in some cases largely ignored. We see this in the news cycle, in advertising and of course we see it when it comes to financial advice as well. My job is to dispel fact from fiction and clear up any money fogginess you may be dealing with. Recently, I had a conversation with someone who was dealing with credit card debt. Exasperated by the work involved in paying her debt, she exclaimed, “why can’t I just file for bankruptcy?”. She thought that we could wave a bankruptcy wand and it would just all go away. I am here to break down what bankruptcy is, how it works and the pros and cons of filing.

But first, it is time for the disclaimer part of the program. I am not an attorney. Filing for bankruptcy requires an attorney. Do not DIY this. Second, everyone’s financial situation is different. If you think you are a candidate, you should speak to an attorney and a financial advisor. Third, this entire piece is about an individual filing for bankruptcy, not a business. If you own a business and are considering this process, please seek legal counsel.