Is Bankruptcy Right for You?
Has your debt been out of control lately? Are you struggling to make ends meet while paying your creditors? These are just some of the questions you need to ask yourself when you are thinking about bankruptcy. Meeting with a bankruptcy attorney at Robinson, Seiler & Anderson in Provo will help you in deciding if bankruptcy is right for you and your unique situation. Below are some points concerning bankruptcy that can help you even further.
Are you Eligible to File Bankruptcy?
If you have enough money to pay your creditors, you may be ineligible to declare Chapter 7 bankruptcy. The courts will know this due to the fact that you have to submit all sources of income as well as the costs of living for you and your family. If you make less than the median income for your state, you're fine. Yet if your income exceeds that figure, and you have enough left over after paying your necessary monthly expenses to cover some of your debts, you can't file.
Your Situation won’t Improve
If your hardship is temporary, and you foresee more cash flowing in the next year, you may want to wait it out. When your circumstances improve, you can apply more to your debts and pay them down much faster. If you are in more than you can handle and find yourself losing money without any future improvements, a bankruptcy might be the answer. This is often the case when a loved one gets hurt or can’t work anymore.
Your Debt Derives from Unsecured Loans
An unsecured loan is one that you have taken out from a lender that doesn’t have any collateral attached to it. This is often in the form of credit cards, medical bills, and collection amounts. A bankruptcy can allow these loans to be discharged. If your debt is due to financing a care or home then you could end up losing your assets. The lenders consider items such as cars or homes as collateral, meaning, if you can’t make your payments, they will take that item from you, sell it, and use the money to pay off the amount you owe.
Can you Walk Away from Financial Obligations?
Going through a bankruptcy will put you in a place where you might have to give up a lot of items/ assets. If you are willing to risk losing one or all over your vehicles, your home, and any other items that contain equity then bankruptcy could be a good option. It frees you from the burden of the bad decisions you made in the past but makes it so you are starting all over.
Bankruptcy has a lot of pros and cons. Knowing if bankruptcy is right for you will take some time and evaluation from one of the bankruptcy attorneys at Robinson, Seiler & Anderson in Provo. Schedule your consult today.