Bankruptcy Right For You?
Bankruptcy? Thinking of Throwing in the Towel?
Thinking about filing bankruptcy? You need to give it some serious thought, there may be consequences that go far beyond the actual discharge of your debt. There are two types of bankruptcies that most individuals file. One is chapter 7 which is a complete discharge of all your debt. The other, is chapter 13 were basically you make a payment arrangement with the trustee and your creditors.
So when do you decide it’s time to throw in the towel? You have to ask yourself the following questions. Do your debts exceed your income? Are you anxious and scared to total all of your debt? Is your phone ring off the hook incessantly? Are you only paying the minimum amounts on any payment due? If you answered yes to two or more of these questions, then you should seriously consider if bankruptcy is right for you.
It’s highly advised that you seek a good bankruptcy attorney who can assist and guide you through this process. We have read many horror stories where the clueless have retained incompetent counsel and are still paying the price for it. Bankruptcy is a scary proposition. The word bankruptcy itself sounds so ominous. The list of the bankrupt runs the spectrum from personal to corporate bringing together the likes of Donald Trump and Enron.
Simply put, bankruptcy is when you owe more than you can afford to pay. To determine where you are financially, inventory all of your liquid assets. Don’t forget to include retirement funds, stocks, bonds, real estate, vehicles, college savings accounts, and other non-bank account funds. And make a rough estimate for each of them.
Then, collect and add up your bills and credit statements. If the value of your assets is less than the amount of debt you owe, declaring bankruptcy may be one way out of a sticky financial situation. However, bankruptcy shouldn’t be approached casually. After all, it’s not a simple, easy cure-all for out of control debt. This article was not intended to give advice on filing bankruptcy, it’s more of an article to help you decide if filing bankruptcy maybe the option that’s right for you. If you are exploring the idea bankruptcy by all means, get good legal advice.
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