Many consumers consider bankruptcy as a final resort after other options have been explored. Yet, some may not realize it is time to file even though their finances are spiraling out of control. To help in determining if bankruptcy is an option, consider the following points.
- Has bankruptcy been an option you've considered for a while?
- Do you feel like your financial problems have lingered for a long time?
- For over the past year have you been struggling to make minimum payments on debt or feel you may not be able to resolve outstanding balances on your own?
If you have the ability to make payments but want a structured schedule that allows you to pay down debt within 3 to 5 years. Chapter 13 bankruptcy
may be something to review. This is a repayment plan that can help pay down debt with payments based on what you can afford.
- What does your budget look like?
- Do you have funds in a savings account or an emergency fund?
If you are unable to contribute to a savings account or the majority of your income is going toward outstanding debt, this is a potential warning sign. Maybe you are considering bankruptcy but have yet to file due to confusion on some myths and misconceptions. Bankruptcy has helped many consumers become eligible for credit, purchase a vehicle and even a home after filing. The process has helped many consumers make better decisions with their finances. If you are struggling to make ends meet, feel overwhelmed by debt, or find it challenging to meet necessary financial obligations it may be time to discuss your situation with a legal expert.