Well, there are actually three distinct costs of not filing for Chapter 7 Bankruptcy.
The first is your future. When you use all of your current earnings to pay off old debts that you know will never be paid off because the interest charges are so high that your minimum monthly payment barely puts a dent in the outstanding balance, you are taking away dollars that should be used to live on in the present time and dollars that you should be saving for your retirement. What kind of a life will you have when your retirement is just a check from the Social Security Administration? I can tell you that it is not going to be an easy one. Remember, Social Security was never meant to be your sole means of support during retirement. It was meant to help contribute toward the cost of living during your retirement years. Without a retirement savings, you will either dramatically cut your standard of living or you will have to continue working well into your retirement years, or both! This is the most dramatic cost of not filing for Chapter 7 Bankruptcy.
The next cost of not filing for bankruptcy is the cost to your mental state and your peace of mind. No one like to get harassed by debt collectors and creditor law firms. You will constantly receive collection calls at all hours of the day and night without regard for the peace and quiet your home should provide. The same goes for creditor law firms. Their job is to take you to court and sue you for whatever balance you owe on the debt. And remember, that goes up dramatically because you agree to pay for their attorneys fees when you went into debt. This can increase the amount you have to pay by up to one third! And when they win in court, which they will, they will garnish your wages or take the money that you have out of your bank account making it even more difficult to live and plan for your future and the future of your children as well. All of this can lead to problems with your physical and mental health, the health of your family, and the future of your family. Being in debt creates a level of stress within the household that it can really take its toll on everyone in the family, kids included.
Finally, there is the cost of not being able to rebuilt your credit score. Continued late paying and high debts and judgments on your credit report will keep your score so low, you will never be able to afford a nice car or a nice home for you and your family. Unfortunately we live in a society where your credit score has a big impact on our lives. It affects the interest rates that we get from creditors, it may affect our ability to get a job, and it may affect your ability to get decent rental housing. It is much more advantageous to file for Chapter 7 Bankruptcy and start rebuilding your credit score. You will be able to get your score back up if you maintain a good credit performance post-bankruptcy. Because it is considered a fresh financial start, it is also considered a fresh financial start for your credit score as well. This won’t happen if you don’t file for bankruptcy. And it won’t happen if you try and use those scam-artist debt settlement and debt consolidation services those companies on television advertise late at night.
So I think it is plainly evident that the cost of filing for bankruptcy is much much lower than the cost of not filing for bankruptcy. The decision is an easy one and you should consider these factors when making that decision.
Just think! You could have all of your unsecured debts (with some exceptions) completely wiped out for such a small sum of money! The cost to file for a Chapter 7 Bankruptcy.
It is by far the best way to get out of debt in the United States. Don’t be fooled by all those debt settlement companies with their slick advertisements! They are a rip off in my opinion and what they don’t tell you is that you’ll be paying for years, they charge an incredibly high fee, and any debt relief they secure for you now becomes taxable income and you have to pay taxes on that income! Even if you don’t use me to file your Chapter 7 Bankruptcy Case, whatever you do, don’t use a debt settlement agency or deft relief program – it is all a big scam!