Being in debt can make be a difficult time, especially when you are unable to keep up on your payments. Regular and oftentimes, rude phone calls from debt collectors can cause you to avoid the telephone. The emotional strain can cause relationships to falter and leave a person deeply depressed.
There comes a time when one must admit that all avenues have been exhausted and paying off the debt is no longer a possibility. Determining when to file bankruptcy is difficult. A person may not feel like they have “enough debt” to file. Or they may believe a myth that they have heard.
What should I do before I make the final decision?
Before you proceed with filing for bankruptcy, make sure a financial adviser has looked over your budget. Consider all options available to you in terms of selling belongings and any investments you may hold, including retirement savings. Also, discuss whether a debt settlement program is an appropriate avenue. Many times you can avoid bankruptcy by working with a debt settlement company and creditors would rather have a lesser amount of money over nothing, which is what will happen if you file bankruptcy.
Does Filing for Bankruptcy Make Sense?
Before you consult an attorney ask yourself a few simple questions.
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Do your assets exceed your liabilities? Basically, do you owe more than you have?
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Have you attempted to negotiate with all of your creditors but been unable to reach an agreement?
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Have you consulted a credit counselor or financial adviser?
If you answer yes to each of these questions and you still do not have a way to pay all of your debts then bankruptcy may be a good choice for you.
Once you have decided to proceed, consult an attorney as soon as you can. You will want to file before any accounts become so delinquent that you are being sued by the creditors.
Deciding to file for bankruptcy is not an easy one. It should be thought about and debated heavily before anything is set in stone. This is a decision that will affect your life for years to come.
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