In today’s harsh economy many people are asking themselves if filing bankruptcy is right for them. To begin with filing bankruptcy is certainly a huge decision for anyone to make. It takes a lot of careful consideration to weigh out the positives as well as the negatives that go along with a bankruptcy filing. Here are a few things to consider when deciding if bankruptcy may be in your future:
After paying all of your normal monthly living expenses such as mortgage or rent, food, clothing, transportation or car payment, utilities, etc., you have less than $200 left.
You are divorced or separated and you have an enormous amount of debt that you are unable to handle.
You have been unemployed, are underemployed or just recently lost your job.
You have a large amount of debt primarily from credit cards, personal loans, medical bills, or payday loans.
You are threatened with or currently experiencing a wage garnishment, lawsuit, judgment, repossession, or foreclosure.
You are experiencing a tremendous amount of stress and anxiety due to an overwhelming amount of debt that you cannot repay.
You are constantly being harassed by aggressive debt collectors at all times of the day and night.
The good news is filing bankruptcy was designed for individuals such as this. Bankruptcy is a legal proceeding that was created for honest, hard working individuals to get a fresh start and regain financial stability under the protection of the bankruptcy laws. Filing bankruptcy allows the individual to be released from all personal financial liability for the discharged debts listed in the bankruptcy. Bankruptcy also prohibits the creditors from continuing with or taking any action against the debtor or their property to collect on the debt. The wage garnishments, lawsuits, judgments, and/or foreclosure will stop. The harassing phone calls and letters will stop. The debtor can enjoy a sense of relief and determine a plan of action to restructure their finances.
Filing bankruptcy has many benefits for financially overwhelmed individuals, but it can also be a complicated process that is best served with the help of an experienced bankruptcy attorney to gain the maximum benefits and the best outcome.