Many individuals across the country are struggling financially, but many of them do not believe that they will file for bankruptcy protection. Sadly, many of these people lost assets and savings that would be protected if they filed a Chapter 7, Chapter 11, or Chapter 13 bankruptcy. How do you know if filing a personal bankruptcy could benefit you? Below are a few indicators that filing for debt relief (sooner rather than later) could benefit you:
You have more debts than assets
When you make a list of everything that you own versus everything that owe, do your debts exceed your assets? In determining the value of the property you own, you should use the amount that you could sell each asset for in a garage sale. This amount is usually significantly lower than the amount you paid for the item, especially if the item was purchased many years ago.
You cannot pay your bills
Is your mortgage past due? Is a car lender threatening to repossess your vehicle? If you are living frugally and still unable to make ends meet, or you are only making the minimum payments on your credit cards, it can be stressful for you and your family. Many people in this situation feel like they will never be able to “catch-up” or pay their debts in full. The truth is that they are probably right. Paying the minimum amount on your credit cards may keep the debt collectors away, but your debt will continue to snowball out of control.
You have no savings
Living without any savings means that one unforeseen negative event in your life could devastate you financially. This includes matters that are out of your control such as a major illness, loss of your job, divorce, or an accident.
How bankruptcy helps
When you file for bankruptcy protection you feel immediate relief. All collection activity against you must stop and you have the peace of knowing there is a strategy in place to get your finances back on track. You typically can eliminate the majority, if not all, of your unsecured debt, including your overwhelming credit card debt and any medical bills. In most cases, this can save you thousands of dollars! Once you emerge from bankruptcy and you have a fresh financial start, you can begin to rebuild your savings and prepare for any future financial emergency.
Please keep in mind that every bankruptcy matter is different. If you are considering filing for bankruptcy protection, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 280-5066.