While there are many distinct reasons to declare bankruptcy, this legal process cause exorbitant amounts of stress due to the complexity of the process. This why when you are considering declaring bankruptcy, you need the advice of a lawyer who is well-versed in the nuances of the law, and one who can help you to recognize whether Chapter 7 or Chapter 13 would be your best option.
Declaring bankruptcy is usually your best option only after you’ve pursued all other opportunities for debt repayment. If you want to know whether bankruptcy is the best option for you, here are some key questions to ask yourself:
- Can I earn extra money to pay my debts by picking up odd jobs?
- Is there any way I can tweak my budget so I can pay more towards my debts?
- Does my debt load reflect a one-time situation, or do I rely on debt to get me through all situations?
- Will my lenders work with me?
- Am I prepared to deal with the time and effort it takes to declare bankruptcy?
- Am I ready for the impact on my credit score that declaring bankruptcy will have?
- Do I know exactly how much debt is outstanding?
If your answers to these questions are negative, declaring bankruptcy may be your best option. This is especially true if you find yourself using credit to pay for regular expenditures (without being able to pay it off immediately), if you are already working multiple jobs in order to cover expenses, or if you are using one credit card to make payments on another.
When you find yourself in a tight spot financially and are seriously considering bankruptcy, come in and see us at NorthPointe Law Group. We can help you evaluate your situation and determine whether or not bankruptcy is truly your best option. Our familiarity with bankruptcy law makes us an ideal choice to help out in your time of financial crisis.