As millions of American’s are feeling the sting from the recession, they’re using Chapter 7 and Chapter thirteen bankruptcy to dig themselves out. Since so many people are faced with unemployment and underwater mortgages, they’re being forced to reassess their personal situation and make important decisions that will impact their financial future.
Virtually any bankruptcy attorney will tell you that if your debt has reached an unmanageable stage, then you should consider bankruptcy as one of your options. That being said, making the decision to file for bankruptcy should never be taken lightly – one has to do so while taking into consideration all of their alternatives.
Have you already tried to negotiate with your creditors? Suppose you have exhausted your resources. If you have tried to negotiate with your creditors and they haven’t budged or if you’re unsatisfied with the terms of your agreement, bankruptcy might be a better option.
This could very well be really important section of this particular topic. Do your liabilities exceed your income? If your monthly payments cost 6,000 a month, but you’re only bringing in 4,000 – you have a problem. At this rate, there’s no way that you would be able to compensate for the deficit unless you either filed for bankruptcy or miraculously found a much higher paying job in this economy.
What types of debts do you have? If a majority of your debts are unsecured such as medical bills, credit cards and old taxes – then bankruptcy might be an optimal solution.
Do you have a steady source of regular income but cannot afford to keep up with your monthly expenses? Or, do you want to keep your home from going into foreclosure? If this is the case, filing for Chapter 13 bankruptcy would allow you to pay all or a portion of your debts over a 3 to 5 year period. This is a debt reorganization bankruptcy that allows you to pay monthly payments at a rate you can comfortably afford.
Have you already exhausted all of your options? Have you already maxed out your credit cards? Have you borrowed money from friends or relatives? Have you already taken out a second mortgage on your house? Unfortunately, borrowing money is more of a band-aid than a permanent solution to a problem. Borrowing money from one source to pay off another source only serves to increase your total debt load, as opposed to reducing it. Borrowing can be a downward spiral for many individuals and a significant warning sign that trouble is brewing.
After assessing your situation, if you truly feel that bankruptcy is your only option – do not wait. The longer you wait the worse things will get. A qualified bankruptcy attorney will be able to sit down with you and go over the details of your situation. They’ll be able to give you a good idea of what you should do next. In fact, they can probably paint a clear picture for you in just one consultation. You haven’thing to lose from their advice, so contact a lawyer today!
Leavengood & Nash is a bankruptcy law firm with locations in St. Petersburg, Clearwater, Tampa and Sarasota. Their firm is knowledgeable in all aspects pertaining to bankruptcy law. They’ll be able to listen to your situation and give you direction as to what your next best plan of action should be. They’re in the business of helping people, if they do not think bankruptcy is right for you – they’ll tell you. Having said that, if it’s your best option – they’ll guide you through the entire process. If you’re feeling overwhelmed right now, they’ll explain bankruptcy in terms you can understand.