Are You A Good Candidate For Bankruptcy?
Owing money does not feel good, especially when the amount feels overwhelming. Debtors sometimes feel like they are drowning, which leads them to consider bankruptcy. The problem is that many do not know this is an option they can consider.
It is okay to feel unsure because bankruptcy is a tricky option that can seem confusing, but the following four signs may help you figure out if bankruptcy is right for you:
Question 1: Exactly How Much Debt Are You In?
The first sign that bankruptcy might be the right option for you is if it would take more than five years to pay off your debts. Just sit down, and write down how much you owe. Compare what you owe to how much money you make, and deduct your necessary expenses.
The money left over each month should go toward paying down your debt, but sometimes that amount is so little that it can take someone a very long time to finish. A Chapter 13 bankruptcy will allow you to repay your debt within three to five years. Now, as long as you diligently pay, any amount left over after the years allotted is discharged.
Your Income to Debt Ratio
Another sign that you should file for bankruptcy is if your income simply does not cover your everyday expenses along with your debt payments. People who have lost their job, no longer are paid enough, or simply do not have enough money to live and pay down their debt should file.
The Value of Your Current Assets
Those who have assets that they feel should be immune to creditors should definitely consider filing. A debtor with a home, car, retirement accounts, or other valuable property is putting their property at risk without filing. This option helps protect things that you really cannot lose over unpaid debts. In essence, it gives you peace again while allowing you to clear these debts in a rational manner.
Filing for bankruptcy is one of the most sensible options to take if you are being threatened or creditors have already taken legal actions against you. This could mean everything from lawsuits to bank levies. Filing for bankruptcy could halt all legal actions and keep you sane.
Are you a good candidate for bankruptcy?
Those who can relate to some of the aforementioned points should consider consulting with an experienced bankruptcy attorney in Gwinnett County. Do not fret, Cornwell Law Firm is happy to clarify your doubts and answer your questions with a free consultation, so just call or fill out our online form.