In tough economic times, bankruptcy can provide a pathway out of financial distress. However, deciding whether to file can be confusing and daunting.
"There is a great deal of mythology surrounding bankruptcy," says attorney Melissa Herman of Herman & Russo P.C., which serves clients in and around Atlanta. "The downsides to bankruptcy are generally far less than doing nothing."
Such misunderstanding -- combined with fear of the unknown -- keeps many people from filing "until their situation has gotten vastly more severe than it should have been," she says.
"Most -- if not all -- of our clients all say at some point, 'I wish I had done this sooner,' once they learn more about the process and benefits," she says.
Does bankruptcy make sense for you? If you are facing any of the following situations, it might be the right move. However, it's always important to consult with a bankruptcy attorney or other experts before deciding to file bankruptcy.