When does bankruptcy make sense?
When bankruptcy doesn't make senseGoing through bankruptcy is a serious matter: Legal fees and court costs can reach into the thousands of dollars and bankruptcy remains on your credit reports for up to 10 years. Filing a bankruptcy petition may not make sense if:
Your financial stress is caused by short-term job loss or a one-time unexpected expense.
Most of your debt is non-dischargeable. Child support, some taxes and court-ordered restitution fall into this category.
Your creditors are willing to work with you to set up an affordable payment plan or reduce your interest rate, you might be able to pay off your debt on your own.