Finance

6 Helpful Tips to Know if Filing for Bankruptcy is Right for You

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Bankruptcy

Today’s bankruptcy laws are designed to assist people who are dealing with levels of debt that have become impossible for them to manage. It is a process that can provide you with an opportunity for a new beginning financially. Filing for bankruptcy is a decision that must always be carefully considered. It is important to be confident that it is the correct move for you and your financial well-being. When in doubt, it’s best to consult with a bankruptcy attorney who can help you with the process.

1- Your Current Liabilities Far Outweight Your Assets and Income

One of the best indicators that filing for bankruptcy might be the best option for you is if your current liabilities outweigh your assets/income. If your current income simply does not allow you to keep up with your ever-increasing debt, then filing for bankruptcy might be the best option for you.

2- Your Credit Score Has Plummetted

Another sign that bankruptcy might be right for you is if your credit score has plummetted well into what is considered unhealthy territory. Though bankruptcy can cause your credit score to initially take a hit, it can help to dramatically improve it in the long run. Bankruptcy might be your best option for becoming debt-free as well as your best option for rebuilding your credit score.

3- You Can Only Manage the Minimum on Your Credit Card Payments

Turning to the use of credit cards can be a common way to deal with other debts but it often leads to the accumulation of further debt issues. If you have gotten to the point where you are no longer able to pay more than the minimum on your credit cards, then bankruptcy might be a good option to consider instead of allowing the credit card debt to continue to worsen.

4- Considering Your Recent Income Level Is Important

Carefully considering your recent income level is an important part of deciding whether or not bankruptcy is the right move for you. The court will be looking at your income levels carefully when determining whether or not you qualify for a bankruptcy filing. Whether or not your current debt is unmanageable for you at the moment, you might still have difficulty successfully filing for bankruptcy if your recent income levels have risen.

5- You Are Being Overwhelmed With Attempts to Collect on Debt You Owe

It can become incredibly overwhelming to constantly have debt collectors contacting you and putting pressure on your to make payments that you simply cannot afford. If this is an issue that you are experiencing, then bankruptcy might be your best option. This is particularly the case if you have already made efforts to negotiate a repayment plan with your creditors and these efforts have fallen through.

6- Your Current Financial Circumstances Are Affecting Your Mental Health

Another compelling sign that filing bankruptcy might be right for you is if the current state of your financial situation has started to have a major impact on your mental health. If simply thinking about your current financial situation causes you to feel overwhelmed and hopeless, then filing for bankruptcy may be the ideal solution and one that can help you to alleviate the stress that you are currently going through.

FadLy Handowo
My name is FadLy Handowo. I love experiencing new things and I am always looking for a new activity to try.

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