When Bankruptcy May Be Right For Your Financial Freedom
When you are struggling with debt, it can feel like you have very few options, if none at all. Whether you are plagued by collections calls or are currently facing the reality of your debt, you have to consider the weight and timeline of your debt before you consider drastic measures, such as bankruptcy. While most people look at bankruptcy as a negative aspect of your financial health, it can actually be a positive for those who need it most.
When considering bankruptcy, it is essential to understand what bankruptcy is. By definition, bankruptcy is a court proceeding that involves examining your assets and debts to determine whether you need to pay all, some, or none. Because bankruptcy is a significant procedure, it comes with long-term financial and credit consequences. Before you proceed with bankruptcy, you should meet with a legal and financial professional to review your financial situation and discuss your options. There are three common types of bankruptcy: Chapter 7, Chapter 11, and Chapter 13. Each should be reviewed before you make any major decisions.
After you have reviewed the types of bankruptcy and the basics, weigh the costs and benefits of filing for bankruptcy. As mentioned, there is a negative stigma behind this decision, but it is vital to understand that there are cases in which bankruptcy may be appropriate. One aspect to consider when you consider bankruptcy is whether you could pay off your creditors in two years of less. Consider whether your amount of debt can fit into 24 monthly payments, because then, you may be able to merely set up a payment plan and move on from there. However, if the debt is more than 24 payments could handle, bankruptcy could be worth it.
When you work with a Bucks County bankruptcy lawyer, they will explain all the fees involved in filing bankruptcy. Even necessary, filing bankruptcy can cost individuals thousands of dollars, whether or not they are able to fix their debts. There are filing fees, attorney fees, increased insurance rates once you’ve filed bankruptcy and a negative impact on your credit score for at least two years. However, if you have such an uncontrollable debt that it is crippling your current life and financial situation, these fees will be nothing compared.
You may also consider bankruptcy if you have been personally served a lawsuit to have your debt collected. As well, you may already have such creditors or collections agencies garnishing your wages or funds, and this puts quite a strain on your daily life. How can you get out of debt if you cannot even pay your monthly bills? When your debt becomes too much, even if bankruptcy is not the right option, it may be worth speaking to a financial professional.
If you are concerned that your debt is taking over your life and that filing for bankruptcy may be right for you, contact a Bucks County bankruptcy lawyer today. A legal professional can help you make the right decision by reviewing your finances, the types of bankruptcy, and whether you could survive filing fees. It is possible to live without debt, without hiding from collectors and phone calls, when you reach out for help from the professionals who are ready to help you.