If you are considering bankruptcy, you should consider it a second chance, not a desperate move. When you use bankruptcy laws to rebuild your finances, you can achieve the debt relief you deserve.
Deciding to declare bankruptcy is not easy, and you may wonder when filing is the right option. You must be careful with your decision and avoid filing for bankruptcy if possible. Bankruptcy will take a toll on you. This filing often has a social stigma attached, reflecting on your credit score.
These are some reasons you may decide bankruptcy is your only choice.
KNOWING WHEN IT IS TIME TO FILE FOR BANKRUPTCY
Medical debt and job loss are two significant reasons people consider bankruptcy. There are times when both situations coincide, 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 FOR 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 with over 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 reduce amounts owed or lower interest rates.
There are a lot of considerations to take into account before deciding to file for 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 debts 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, and obligations you’ve taken on leases or contracts. Chapter 13 would allow you also to wipe out debts from a divorce and loans from a retirement plan. It is often challenging 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 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 a choice, weigh all your pros and cons and talk to the experts at Country Credit Club.
WHO TO TALK WITH ABOUT FILING FOR BANKRUPTCY
Country Credit Club has over twenty years of experience in financing and credit repair. 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.