Should I file Bankruptcy?

This is a really big question at my office. An individual calls because they are being sued by a collection agency. Perhaps there are 2 or 3 lawsuits pending, and they feel like there is no other alternative but to file for bankruptcy.

Sometimes, I tell them yes, you should file for bankruptcy. Sometimes I tell them no, it's not the right move. Knowing whether to file depends upon a number of factors. How many lawsuits are there? How much debt do you owe? How likely is it that the collection agency is going to prevail? Which is more cost effective for the client, defending a lawsuit or filing bankruptcy? What are the long term ramifications of filing for bankruptcy?

To be honest, I do everything in my power to assist people in avoiding filing for bankruptcy. It's not that I have anything against bankruptcy, I do know that it is often the right way to go for many people. For those who have mountains of debt, little to no income or who are just in too big of a hole to dig their way out, bankruptcy may be the wise choice. From my perspective, though, I don't believe that bankruptcy is an option where there is only one or two defaulted accounts, or where the total debt outstanding is relatively small. I would like to help the individual repair their credit and get on with their financial lives as quickly as possible and bankruptcy is not conducive to that goal in many cases. 

If you have a credit card company or a collection agency attempting to collect a debt from you, please contact my office at 412-823-8003 or send an email to Attorney Greg Artim