If you are considering filing for bankruptcy, you should look at it as a second chance, not a desperate move. When you use the bankruptcy laws to rebuild your finances, you can achieve the debt relief you deserve.
Deciding to declare bankruptcy is not an easy decision, and you may be wondering how to know when filing is the right option? You have to be careful with your decision and avoid filing for bankruptcy if it is possible. Bankruptcy will take a toll on you. This filing often comes with a social stigma attached, and it reflects on your credit score.
These are some reasons you may decide bankruptcy is your only choice.
Knowing When it is Time to File Bankruptcy
Medical debt and job loss are two significant reasons people consider bankruptcy. There are times when both situations occur at the same time, which plays heavily on your financial health. There are other reasons as well that may be forcing you to consider filing bankruptcy:
- You have an excess credit card debt
- You are getting divorced
- Your home is underwater and in danger of foreclosure
- Your only method of paying for items is to use a credit card
- Creditors are suing you for payment of your debts
What You Should Consider Before Filing Bankruptcy
There are other debt-relief options to avoid filing for bankruptcy if you are struggling financially. You can talk to financial experts at Country Credit Club who have more than twenty years of experience in the financing and credit repair industry. If after talking with our experts, it is determined filing is in your best interest, we have a network of attorneys who can guide you through the bankruptcy process.
Another step you could take is trying to live within a budget, or obtaining a second job to increase your income. You could also consider selling off some of your assets to pay down your debt. Country Credit Club could also help you talk with creditors about debt negotiations and possibly reduce amounts owed, or lower interest rates.
There are a lot of considerations to take into account before deciding to file bankruptcy. Let the experts at Country Credit Club help you make the right choice.
How to Know Your Debt Qualifies for Bankruptcy
Not all debt can be included in a bankruptcy filing. Some of the debt you cannot wipe out include; your taxes, child support, any debt owed to a government agency, or debts awarded through a personal injury caused to another when you were driving while intoxicated.
Debts you can wipe out when filing Chapter 7 include credit card debt, personal loans, lawsuit judgments, obligations you’ve taken on leases or contracts. Chapter 13 would allow you to also wipe out debts from a divorce, loans from a retirement plan. It is often difficult to discharge student loans.
Will Bankruptcy Benefit You?
As mentioned there are a lot of decisions that go into knowing if bankruptcy is the right option. One good question to ask is can you find a way out of debt within five years to avoid filing for bankruptcy? If the answer is no, then bankruptcy might be your only choice. Before you make the choice, weigh all your pros and cons and talk to the experts at Country Credit Club.
Who To Talk With About Filing Bankruptcy
Country Credit Club has more than twenty years of experience in the financing and credit repair industry. We offer you a free consultation and are ready to help you plan your financial future. If you are considering bankruptcy, we have a network of attorneys covering each state that will help you make the best decision for your financial future.