The phone keeps ringing with calls from debt collectors.  Any day now you expect to receive a visit from the sheriff with court papers where you’ve been sued to collect past due debts.  You and your spouse are arguing more frequently about money.  It seems you are getting further and further behind.

If this describes your situation, then you probably should consider filing bankruptcy in Knoxville.  Why do I say Knoxville?  Because that’s where the bankruptcy court is located for those who live in Knoxville, Sevierville, Maryville and Jefferson City (and surrounding areas).

Deciding whether to file bankruptcy can be a difficult decision.   In the nearly 30 years I’ve been helping people get a “fresh start” by filing Chapter 7 bankruptcy, I can’t even remember one person who was pleased to be in that position.  Unfortunately, sometimes life deals us all a bad hand.  (Sometimes we help with the dealing of that hand because of bad decisions we’ve made.)  So if you are considering whether bankruptcy is the right course of action you should think about the following:

1.  Can you pay off your unsecured debts (not your car or your house) if you made payments diligently for 36 months?

2.  What is your age and how does that impact your earning ability.  If you are nearing retirement, then you’ll need to expect a reduced amount of income.

3.  Do you have any sort of cash reserves for an emergency fund?  We all have emergencies from time to time.  Most people that are struggling financially do not have an emergency fund.  So when an emergency (even a small one) arises, it makes you get more and more behind on paying your bills.

4.  Have you already been sued?  Remember that if a creditor gets a judgment the next step is collection of the judgment by garnishing your wages or your bank account.  That’s a surprise you probably don’t need.

These are all things to consider.  Then your best bet is to consult with an experienced bankruptcy attorney.   Your friends probably are not well equipped, and definitely not trained, to help you evaluate your specific personal situation.

I don’t recommend bankruptcy as the first option.  But unfortunately for many folks it’s the best option.

Picture Credit:  alexanderdrachmann