Today’s letter is “O” for “Obligations”.

As a Colorado Springs Bankruptcy Attorney, it’s not unusual for me to meet with people who are genuinely upset that they are unable to keep up with the financial obligations owed to their creditors.  It’s extremely distressing when you’ve been paying your bills regularly for years, and then something bad happens: you get laid off, you get sick, you get divorced.  Then the money just isn’t there.

I think it’s important for people who find themselves in this situation to take a step back and give some thought to what is really important in their lives.  Sure, they have obligations to Citibank, Discover, Bank of America, and Capital One.  But they also have obligations to their children, their other family members, and even themselves.

When it comes to deciding whether or not they should file for bankruptcy, if it looks like that’s the only way they’ll be able to get rid of the extreme financial burden they’re carrying, it’s important for them to realize what filing for bankruptcy will do for them:

• it will eliminate their credit card debts;
• it will eliminate their medical bills;
• it will eliminate their payday loans;
• it will eliminate the deficiency owed on their repossessed car loan; and
• it will eliminate their other dischargeable debts.

But most important, it will give them a fresh start and allow them to take care of the truly important obligations in their lives.  

It will allow them to:

• set aside money for their children’s education;
• start putting some money into a retirement account for themselves;
• rebuild their credit so maybe they can purchase a home of their own some day.

When people come to my Colorado Springs bankruptcy law office, I don’t recommend that anyone file without giving it a lot of serious thought.  Most of us have many obligations: to our creditors, to our neighbors here in the Springs, to our co-workers, etc.  But our most important obligations are owed to those who we love and who depend upon us for their well being.

When you give it some thought, it’s not too hard to determine which obligations are the most important.  If filing for bankruptcy will help you meet your most important obligations, you should give it serious consideration.

Other non-Colorado Springs bankruptcy attorneys have also written about bankruptcy “O” words:

Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell: O is for Objection

Bay Area Bankruptcy Lawyer Cathy Moran: O is for Omitted

Suburban Philly Bankruptcy Lawyer, Chris Carr:  O is for Options

New York Bankruptcy Lawyer, Jay S. Fleischman: O is for Own

photo credit: TooFarNorth