A recent blog by Steve Rhode of Huff Post was titled “Why a Chapter 7 Bankruptcy Should Be Your First Option and Not a Last Resort.” It discussed the financial benefits of exploring bankruptcy first in order to best address relieving debt. In Philadelphia and its surrounding counties, those dealing with credit card debt, collection lawsuits or foreclosures, can obtain a free legal consultation from an Attorney at Sadek & Cooper Law Offices to fully review their options.
An example given in the blog post and original article written by Michael Boyee, explored the pros and cons of attempting to pay off approximately $25,000.00 in credit card debt over 5 years. This took for granted that the debt could be repaid without interest, which is not always the case. After the example repayment was completed, was the correct financial choice made?
“If you do not look back, you will not see that the real cost of your consolidated repayment was not 25 thousand dollars. It was as much as $590,000.00 if you were to have instead contributed that same $418.00 into a retirement fund for that 5 years; for a total of roughly 32k; with an average return of 9.74%; until you reach a retirement age of 65.”
“The math clearly favors chapter 7 bankruptcy. The complications are introduced by our individual emotions, and the perceptions of the conventionally wise.” -Michael Boyee
If you are struggling with debt and considering your options, let our attorneys give you a free legal consultation. Our goal is to create a solution to your particular financial situation that is in your best interest, and that you are comfortable with.