Should You File For Bankruptcy Protection?

 

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There really isn’t a magic formula to figure out if bankruptcy will present your best choice. This is obviously an option you’re considering if you’re on this website, but it’s no sure fire guarantee that it will be your best choice unless you’ve taken a few minutes to consult with us in our office regarding your situation.

That said, we can provide a few examples of indications that bankruptcy would be a good solution for your situation. Read below.

You Might Benefit Immensely From Bankruptcy If…

• Paying minimum payments on bills and credit cards
• Cannot budget a way to get out of debt in 5 years or less
• Receive late notices regarding foreclosure
• Severe financial issues and setback
• Lost job
• Costly divorce
• Unexpected medical bills from accident or iillness

We Can Provide Other Options Than Bankruptcy

 

Some of the common bankruptcy alternatives include these following:

• Negotiating directly with creditors for a reduction in monthly payment amounts
• Negotiating a skip of a couple debt payments while you relieve a temporary setback
• Credit counseling

Bankruptcy Is Not For Everyone, So We Can Help You Find Out If It’s Right For Your Situation

While each debtor has a different scenario, we can offer you information about how bankruptcy could or could not be your best option. Each and every client who comes to our office might not have been fired from a job. But they may have medical bills, card balances, a threat of home foreclosure or other serious problems. Filing for protection through bankruptcy can help these situation. Yet, creditors can also consider your filing of a bankruptcy when they determine later whether they would like to offer you credit. Some creditors view a past bankruptcy filer as a higher risk when loaning money and could either choose not to extend you with credit or they could choose to offer you less favorable credit terms. On the other hand, there are also those who file bankruptcy who are able to obtain credit fairly quickly because of a good, steady employment. The bankruptcy filing stays on the credit report at a duration of 7-10 years, but the credit issuers sometimes view you as a better risk than if you had all sorts of bills to pay. If you have a clean slate, they know that you have less to worry about and are more likely to be able to pay them.