Are you thinking about filing for personal bankruptcy? If so, consider this: 1) Before filing bankruptcy your lawyer gets paid thousands of dollars (cash paid upfront), 2) You can't erase IRS taxes and 3) Your home and car is not protected by declaring bankruptcy. Let me show you how to avoid bankruptcy and get those pesky creditors from calling you ever again!

1. Filing for personal bankruptcy - Is declaring bankruptcy the best option for you?
If you're thinking of filing for personal bankruptcy, I suggest you reconsider.
More than 8 years ago, I filed for a business bankruptcy, and it was one of the
worst choices of my life.
You see, knowing what I know today, I never had to go bankrupt. And in most
cases, you don't have to either.
All you need is a little (non legal) advice. I wish someone told me the following:
There is no debtor's prison
No one has to worry about going to prison because of not being able to pay
overdue debts.
With that said, you might be able to pay off your debts within a few years while
maintaining a reasonable standard of living.
Your lawyer loves declaring bankruptcy
The only people who win in bankruptcy court are the lawyers. Before filing
bankruptcy, they get paid upfront and make hundreds and hundreds of dollars
per hour as most of the bankruptcy reorganization proceedings are fully
computerized.
A paralegal fills out your going bankruptcy details into a computer, presses a
button and the paperwork flies out of their printer in less than 15 minutes.
You're never going to get honest advice about filing a bankruptcy from a lawyer
because honesty doesn't pay for the BMW lease payment.
Keep this in mind if you're still thinking about filing bankruptcy.
You can't erase tax debt
Whether you're declaring bankruptcy or not, taxes are (generally) not protected
by a filing. The Bankruptcy Reform Act of 1978 did not cover any tax-related
debts... so you're going to owe no matter whether you get help filing bankruptcy
or not.
The same is often true with student loans, child support obligations, or criminal
fines -- in most cases filing chapter 7 bankruptcy does not eliminate these debts.
And secured loans like your car and house are not protected after filing for
bankruptcy. So you'd still have to make payments on those items if you wish to

2. keep 'em.
The big black mark
It's a myth that you earn a clean slate after just 7 years... it's actually 10 full
years.... even more if a bankruptcy trustee slaps a "bankruptcy restriction order"
on your case... it's given to you if the circumstances leading to your insolvency
were activities deemed "careless" like gambling or speculation. If this happens,
your name remains on the bankruptcy filing records for a period of a full 15 years.
The bottom line is filing for personal bankruptcy is a LOT more complicated than
you'd think, it's VERY stressful and often unnecessary.