Posted on: 9 February 2019
If you're facing a large amount of debt and can't find a way to pay it back, bankruptcy is always an option. Many people today file bankruptcy when they have nowhere to turn. However, to ensure you make the right financial decisions, you need to consider this advice from bankruptcy attorneys.
Consider Other Options First
Bankruptcy should never be the first option when facing financial hardship. It's sort of a last-resort option because it can affect your financial future for a long time to come. As such, you need to think about other ways you could possibly pay your debt.
For example, you may consider getting a second job to earn additional money to go towards debt. Or, you can cut out unnecessary spending. It may even be necessary to create a separate savings account strictly for profits to go towards eliminating your debt. If you've exhausted all options and nothing has worked, then bankruptcy may be the right solution.
Decide Between Chapter 7 and Chapter 13
There are two major bankruptcy options that you should consider: chapter 7 and chapter 13. The former option is where most of your debt is wiped away. You'll have a clean slate and won't have to pay back medical bills or balances on credit cards. This option is generally reserved for low-income debtors.
Conversely, if you make too much money to qualify for chapter 7 bankruptcy, then you should consider chapter 13. It involves the creation of a debt repayment plan, where you gradually pay back the money you owe each month. Best of all, chapter 13 bankruptcy enables you to keep your property.
Get Legal Assistance
Tackling the process of bankruptcy alone can be rather intimidating. You may not know what to do, and that's perfectly okay because you can always get legal assistance. Finding a bankruptcy attorney who can take you through the various stages of bankruptcy makes this process much more manageable.
They'll assess your financial situation and see if bankruptcy is the right option for your future. If it is, they'll help you with all of the paperwork and make sure errors are avoided so that this process doesn't drag out.
Debt can creep up on you if you're not careful, and when it does to the point of excess, bankruptcy may be the right solution. Just make sure you take the right precautions and consider advice from bankruptcy attorneys. Then, you won't have any regrets and can get your finances back on track.
For more information, contact a company like Merna Law today.Share