If you are unable to pay all of your debts every month, bankruptcy might be the answer you seek. Bankruptcy is a very real option for many Americans facing financial difficulty, and can help you get back on your feet without the hassle of answering creditor calls or letters. But filing bankruptcy is a big decision, so before you dive in head first it is important to know what bankruptcy will do for you.
Three questions you should ask before filing bankruptcy, which are likely to help you make your decision, include:
- What am I trying to accomplish by filing bankruptcy? It is important to have an idea of what your post-bankruptcy financial picture will look like, so you can determine if filing bankruptcy will help you reach your money goals. Once you have a good idea of what your bottom line will be after your bankruptcy case is over you will be in a better position to see the benefits of filing. If the benefits are not as great as you had anticipated, you might consider alternative debt resolutions plans.
- What pieces of property are you hoping to keep? Knowing what you need in order to maintain your daily responsibilities will help you determine what you can live without. Once that decision is made you can look at what your budget will be when certain debts are no longer included in your monthly obligations. You get to this point by deciding what to keep and what to give back to the lender. The things you keep will still have to be paid for, but if you surrender collateral to the creditor you will not be required to maintain the payments.
- How much unsecured debt will I be able to eliminate? Often times the payments on high interest rate unsecured debt like credit cards are budget busters. Eliminating these payments can free up your money and make room in your budget to pay for other necessary items like your car and home.
There are other considerations than just these three, but because every case is different the best approach is to allow a trained bankruptcy attorney review your circumstances and give you advice on your particular set of facts. Call or office today to learn more.
For more information about how to handle overwhelming debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.