6 Ways to Help You Decide if Bankruptcy is Right for You
During tough economic times, most of us review our financial situations and find that we don’t have enough money to cover all the expenses we have. Shopping for groceries, paying for rent, and paying the electric bill are some of the things that have to be done. Filing for bankruptcy is a good way to get a fresh start. But it is difficult to determine whether it is the right choice. For this, you need to review your finances and decide if you are actually eligible to file bankruptcy, or if there is an alternative option you would be better off with.
Following are 6 ways to help you decide if bankruptcy is right for you:
1. How much debt do you have?
First and foremost, you need to determine how much debt you have by going through your finances. It is very important that you figure out everything about your finances before determining whether the bankruptcy is the right choice for you. You should think about filing for bankruptcy if you have at least $10k in debt.
2. How much equity do you have in your house?
It is very important to take all things into consideration when deciding if you should file for bankruptcy. This includes figuring out how much equity you have in your house. If you have more than $20-$40k in equity, then it may not be a good idea to file for bankruptcy. But if you have less, then filing for bankruptcy could be a good call.
3. Are your wages or bank accounts being garnished?
Filing for bankruptcy may be a necessity if those to whom you are in debt are taking part of your wages before you ever see it.
4. Are you closing a business that has a lot of debt that you personally guaranteed?
It might be necessary that you file for bankruptcy if you are closing down a business that has a large amount of debt in your name. In this situation, you should consider filing for bankruptcy in order to minimize the impact this debt can have on your personal life.
5. Are you being sued by a creditor?
If you are being sued by a creditor in addition to owing money, then it is time to get the creditors off your back and get a fresh start. Being sued by a creditor is one of the major reasons for filing bankruptcy.
6. Have you filed a bankruptcy within the last 7 years?
According to the laws of bankruptcy, there are certain individuals that are unqualified to file for bankruptcy. Some of these certain individuals include those who have filed bankruptcy within the last 7 years. Therefore, if you have filed for bankruptcy within the last 7 years, it is recommended to check with your bankruptcy attorney to see if you may file again.
If the answers to the above questions indicate that you need to file for bankruptcy, then it is time to find a well-reviewed and trustworthy bankruptcy attorney in your area and get a fresh start.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.