For those struggling under crippling financial debt, bankruptcy may be the option they need to start working their way back to financial freedom. While the thought of alleviating or discharging your debts may seem like an excellent choice, there are a few things you should seriously consider before beginning the filing process. On this blog, we examine three questions you should ask to find out if the bankruptcy process is the right choice for you.
Do I Qualify?
This is a pretty reasonable question, as many people who are considering bankruptcy are unaware that they don’t even qualify. To file for Chapter 7, you have to either earn less than the state median income on a monthly basis, or pass what is called the “means test.” An attorney can help you determine if you qualify for Chapter 7 bankruptcy, so speak with one to learn more about the laws and qualifications before starting the filing process.
Are You Prepared to Face the Penalties?
Bankruptcy is not a decision that should be taken lightly by any means. While you may be able to discharge some of your debts and consolidate others, you also face long-term damage to your credit report, and likely won’t be able to secure a loan for something such as a home, a car, or even a line of credit for a long time to come. A bankruptcy can continue to impact your credit for as long as 10 years, so if you declare, you have to recognize you’re in it for the long-haul.
Can My Debt Be Reorganized?
Certain types of debt can be reorganized through alternative programs, some of which do the same sort of restructuring and combining of all debts into a single monthly payment loan. These programs are generally much friendlier to your credit score and allow you to rebuild your score quickly without the penalties on your credit report. It does still take time to restore your credit, but many people who can afford to get out of debt without bankruptcy would be far better-served using one of these options.
If you are struggling with your financial debt and have nowhere to turn, make the call to an Englewood bankruptcy lawyer for help. At the Law Office of Michael Boyd, we have earned a reputation as a trusted and recommended advocate through our more than 20 years of practice. We are well-known throughout the community, and take pride in helping those who are struggling under the weight of their financial burden to find the relief they so desperately need.Call the Law office of Michael Boyd today at (201) 383-6173 to schedule a free, in-office consultation!