You may find yourself without a job and are now overwhelmed with debt you have no hope of paying off. If this sounds like a situation you have gotten yourself into, you might consider filing for bankruptcy. Before you reel back in shock, consider the fact that this may be the best financial decision you can make.
If you still think you are financially sound, ask yourself these questions:
- Do you spend more time on the phone with debt collectors than your family?
- Do you only make minimum payments on your credit cards?
- Do you use your credit cards rather than your salary to pay for necessities, such as groceries?
- Do you have a stack of bills spilling out from your drawer?
- Do you spend your whole salary before the end of the month?
If you answered yes to even two of these questions, your financial situation is more desperate than you thought. By filing for bankruptcy, you can formally declare that you cannot afford to pay what you owe.
To determine where you are financially, you should inventory all of your liquid assets first, such as your stocks, real estate, vehicle(s) etc. After calculating a rough estimate, also figure in your bills and credit statements as well.
If the value of the assets you have is far less than the total debt you owe, consider declaring bankruptcy to get out of this situation. However, do not approach this process.
The worst thing you can do is treat it as a cure-all for your current financial situation. While it will help rid yourself of some debt, you also will be obligated to pay off some debt. The aim of this process is to give yourself a fresh start by discharging certain debts and remove your liability for paying them.
Plus, you will have to file for bankruptcy in the relevant court, a procedure that can be quite complex for the inexperienced. This is where an experienced attorney from Covert Marrero Covert can prove invaluable. Our law firm has a large number of cases involving Chapter 7 bankruptcy and can help you organize your finances and determine the best course of action. This includes filing a petition in court on your behalf to initiate the bankruptcy process. If doing so is not in your best interests, we can help you determine alternatives. Get in touch with us for a consultation today.