Are you in a position with your finances where you feel like a bankruptcy filing is the only thing that can save you? If so, ask yourself these three questions to determine if bankruptcy is right for you before you call a bankruptcy law firm.
Are You Receiving A Lot Of Phone Calls From Creditors?
It's not unheard of to miss a bill from time to time, but when you do, you have to make arrangements to pay that bill with your creditor. If not, you'll likely be receiving phone calls or getting notices in the mail about overdue payments. When your outstanding bills are causing a nonstop barrage of phone calls from people asking for their money, you know that you are in trouble. Using bankruptcy will be able to stop the harassment from creditors that are trying to get money that you don't have. You'll get a fresh start to be able to make right on these debts or have them discharged completely.
How Does Your Income Compare To Monthly Obligations?
You need to take a hard look at your personal financial situation to determine if bankruptcy will even help the problem that you have gotten yourself into. Look at your monthly obligations of debts that you won't be able to discharge, even if it's due to necessity. This includes the mortgage on your home, a loan payment for your vehicle, child or spousal support, and back taxes. If your income is not enough to afford these payments, then bankruptcy is not going to be the answer for you.
While some debts will not go away or be discharged, like back taxes and child support, other debts will just be replaced with new ones. Your mortgage payment will be replaced with monthly rent for an apartment, and your car payment will be replaced with a new car payment. You should use bankruptcy if you're able to continue paying off those monthly obligations after your unsecured debts go away. If this is not possible, you'll only end up with more financial problems down the road.
Do You Have Many Unsecured Debts?
You'll want to evaluate each debt you have and determine if it is unsecured, since these are the debts that can be discharged. This is likely to include credit card bills, but it can also include medical bills, loans, and any legal judgments that you're unable to pay back. If these are the debts causing you problems, then bankruptcy may be the solution you are looking for.