Before Filing for Bankruptcy there are many things to consider when you’re deciding if bankruptcy is the best solution to your debt problems. In our article 3 Things to Consider Before Filing for Bankruptcy we shared the following to consider:
- Will bankruptcy deal with your debt problem?
- Weigh the advantage and disadvantages of bankruptcy.
- Do you have an unresolved issue that led to your debt problems?
Read more about those considerations here. Read on for three more things to consider before filing for bankruptcy protection.
- How much money do you owe?
We ask you to consider how much money you owe because often clients come to us not knowing exactly how much debt they have. When debt feels overwhelming, bills pile up, and collection calls become incessant, it may have felt easier to ignore the details of your debt problem.
Now is the time to get clear on exactly how much money you owe. Gather your bills and statements and make a list of the debts you owe. Knowing exactly how much money you owe is the first step in taking control of your problem.
Empower yourself with knowledge. Once you know exactly how much debt you have, you’ll be better equipped to decide if bankruptcy is the right choice.
- Consider alternatives to bankruptcy.
We are a law firm who helps people file for bankruptcy protection, but we are not in the business of talking people into bankruptcies they do not need or are not the right solution for them.
There are alternatives to bankruptcy that may be right for certain individuals. However, if you choose an alternative, such as debt settlement or a debt management plan, make sure the option you choose addresses your entire debt problem. The truth is many of our clients who ultimately file for bankruptcy first tired an alternative to bankruptcy that failed. And in many cases, it left them worse off financially than if they had filed for bankruptcy before the alternative failed.
Further, we caution anyone exploring how to get out of debt to be diligent and do your research to avoid scams and other unscrupulous business practices. At a minimum, Google reviews for any company or service you’re considering and check their ranking with the Better Business Bureau.
- Will bankruptcy ultimately have a positive effect on your life?
This is a difficult one to consider because filing for bankruptcy is a difficult decision and unfortunately it still carries a stigma. However, filing for bankruptcy is not shameful. Consider too, are you facing real threats that could be dealt with through bankruptcy? Are your wages being garnished? Are you being sued for unpaid debts? Is your house about to be foreclosed on or your car repossessed?
Also, consider the value of having the burden of debt lifted. Filing for bankruptcy can give you a debt-free fresh start. It can give you relief from the constant pressure to pay back debts that you cannot afford.
While choosing to file for bankruptcy may not be easy, filing may ultimately have a positive effect on your life.
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We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.