Important Things to Consider Before Filing for Bankruptcy
If you are struggling with a high amount of debt, filing for bankruptcy may have crossed your mind. For some, this can be a good option, although it is not the right choice for everyone. There are pros and cons to filing for bankruptcy, so it is important to thoroughly consider the following before filing:
- Determine if bankruptcy is right for your situation – If you are being sued for debts, facing foreclosure or are having your wages garnished, bankruptcy may be a good option for you.
- Investigate alternatives to bankruptcy – Before filing, take a good look at your budget. If you can manage your spending and slowly pay off debt, you may not want to file for bankruptcy. You can also consider meeting with a certified credit counselor to discover options that may work for you, aside from bankruptcy. You may also be able to negotiate with your creditors for reduced payments or settle your debts for less than what is owed. Typically, bankruptcy is a last resort.
- Understand the bankruptcy process – It is important to know that there are two main types of bankruptcy, Chapter 7 and Chapter 13, and to understand how each would affect you. It is also important to know that not all debts can be discharged in bankruptcy. If your debts include a large number of non-exempt items, bankruptcy might not be the best option for you.
- Understand how bankruptcy will affect you – Bankruptcy will remain on your credit report for years. This can influence getting a job, a promotion, renting an apartment, purchasing a home or car and more. Consider your goals for the next two to ten years and see how bankruptcy will affect them.
- Speak with a bankruptcy attorney – Finally, the most important thing you can do is speak with a highly skilled and experienced bankruptcy attorney. An attorney will evaluate your unique financial situation and offer sound legal advice on the best options for you.
If you are facing creditor harassment and high debt and feel like there is no way out, bankruptcy could be a viable option for you. However, there could be alternatives that may work better for your situation. The bankruptcy attorneys at the Oswalt Law Group in Phoenix understand how stressful debt can be. We are here to help you through this difficult time, from determining if bankruptcy is right for you to filing and eliminating debt. Contact us today to get started.