In today’s society, most people have a hard time coming up with enough money to pay all of their bills on time each month. It gets even harder when they don’t have enough money to have the ability to purchase the necessities needed to survive. While all of us can agree that the economy today is better than it was a few years ago, it’s relatively hard for most families to earn enough cash to make ends meet. After a while, not having enough money can lead a person to fall behind in their bills resulting in non-stop debt collection calls.If you find yourself in this situation, bankruptcy may be the best savings option.
Consider bankruptcy only if it fits your circumstance.
Bankruptcy depends heavily on the amount of debt owed, to ensure you are heading down the right path to a fresh start there are a few things you need to ask yourself beforehand.
1. Are you utilizing your credit card to pay your utility bills?
2. Are you paying only the minimum payment on your credit card because you are unable to pay more?
3. Are you getting debt collecting calls on a regular basis?
4. Are you always stressing over the amount of debt owed and feel like the world around you is will cave in?
If you have answered yes to any of these questions, then bankruptcy could bethe best option for you. However, there are other factors that play a role in determining your options when filing.
More important factors to consider before filing for bankruptcy
- Earning a steady paycheck?
If you are earning a steady paycheck then it may be possible for you to avoid filing bankruptcy. You could seek help from a debt consolidation service which will help you combine all debt owed into one monthly bill.
- Own a home?
While bankruptcy may sound like a great option at first, if you are a home owner, you should think about the possibility of losing your home if you are only given the option to file Chapter 7. On the other hand, if you have the option to file Chapter 13, you are likely to hold on to your home and other assets.
- Can your biggest debts be forgiven by bankruptcy?
There are a large number of debts that can be erased when filing bankruptcy. Some of these debts include:
- Child support payments
- Tax payments
- Student loan debt
If a large part of your debt lands in at least 1 of the above categories then bankruptcy is less likely to solve your debt problem.
- Are you able to afford to file for bankruptcy?
When filing for bankruptcy, you can expect to pay roughly $1500 minimum.
If you fall in 2 or more of the categories above and can afford to pay the fees that occur for filing for bankruptcy then you should contact Cooper & Co. Ltd. Bankruptcy Trustee to get started.