When to Consider Bankruptcy

A Loss of Income

Individuals:
Usually a job loss, reduced pays, divorce, retirement, or illness lead to a loss of income - all circumstances which are not the fault of the individual.

Business:
Loss of income normally is due to a gradual decline in sales over several years without a corresponding reduction in operating costs.

Unable to Pay Debts

When insufficient earnings lead to payment defaults, bankruptcy protection may be the only way to:

• Escape creditor harassment
• Protect a home
• Save a business

A "Second Chance" - the Purpose of the Bankruptcy Law

Congress and the lending community were aware that most individuals and businesses believe that when a debt is incurred, they will be able to pay it.

Congress with the support of the business community decided that a "second chance" is best for our society because:

• Individuals should not be punished for the remainder of their lives with a loss of their home and other possessions
• A business should have an opportunity to continue and preserve jobs for its employees
• A rehabilitated borrower will be able to incur and pay debt in the future

Legal Assistance

The bankruptcy law is complex. Guidance from an experienced bankruptcy lawyer is essential to obtain the maximum benefits of the law.