Just the mention of “bankruptcy” has already brings your thoughts into paranoia. But then, it doesn’t have to be negative as most people view it. Yes, it can impact your whole life--your career, your family, your future. Yet, when things go out of hand and you already found yourself caught in a financial trouble and creditors pestering you nonstop, bankruptcy can be a life-saver. You’ll have the opportunity to wipe out your debts and repair your credit records.
Filing bankruptcy might be the last thing you have in mind. However, certain circumstances might be you calling you as well to do so. But how will you assess and identify if filing bankruptcy is the right choice for you? Of course, you need a professional help from a bankruptcy attorney.
To give you a glimpse on how to determine the applicability of the bankruptcy to your situation, here are some signals to observe:
Do you think you can pay your debts before things get complicated?
You might be very agitated at the moment because your creditors come at once to collect unpaid debts and you currently don’t have enough money. Yet, look at the future as well. Do you have any big money coming or any source of good amount sufficient to pay your debts? If so, maybe you don’t need to file bankruptcy. However, make sure to consult a bankruptcy attorney. He/She will give you appropriate advice about your capability to cover your outstanding debts.
Will a debt settlement work?
You are considering a debt settlement program. Can you afford to sustain the monthly deposits for three years? Because most programs require you to comply so. Maybe you should consult a credit counselor to help you assess if a debt settlement will really work considering your other expenses.
Do your debts totalled more than all your assets’ market value combined?
If your answer is yes, then maybe you should start looking for a bankruptcy attorney. This is very serious. It could be that you’ve spent too much which currently put you in a financial trouble. Then, you’ve added the market value of all your available assets and realized that it cannot cover all your outstanding debts.
Do creditors are swarming and contacting you nonstop to collect unpaid debts?
When you can’t take it anymore and it seems like your creditors are starting to harass you verbally, bankruptcy is an effective method to stop them from doing so. Because the moment your bankruptcy petition is approved by the court, they will notify creditors a restraint from making any form of collection from you.
Are you so close of losing your house and car?
Does a creditor notifies you about a house foreclosure or car repossession? Surely, you can’t afford to lose them. Filing for bankruptcy can help you save such properties. Such as in Chapter 13, you are given the chance to catch up with your late mortgage payments.
Now, if you have other financial issues and want direct answers, it is best to sit down with a bankruptcy attorney. One can definitely give you various, efficient options on how to deal with your piled up debts.
Conway Law Group - Richmond, VA
6802 Paragon Pl, #410 Richmond, VA 23230
Follow us on Google+