Are Your Debts Too Big To Pay? See If Bankruptcy Is For You

Starting a business is always a risk, and sometimes it doesn't end well. Read on to find out if bankruptcy is the right move for you.

Are Your Debts Too Big To Pay? See If Bankruptcy Is For You

Are Your Debts Too Big To Pay? See If Bankruptcy Is For You

2 April 2018
, Blog

Did you take out a mortgage you can't afford, while also having a car payment, student loans, and other debt? If you can no longer manage to make any of these payments, and you are at a point where it's difficult to cover living expenses, contact a legal debt professional. It's important that you find out if you can file for bankruptcy, and then you can start making better financial decisions in your life. Here are some of the things to talk about with your attorney:

Can You Salvage Your Finances and Credit?

The lawyer will compare your debt to the amount of income coming in, to see what they can do. Filing for bankruptcy may not be necessary. You may be able to:

  • Settle debts
  • Refinance the debts into one payment
  • Get lower interest rates

There are a lot of things the lawyer may be able to do to help you get your finances back on track, to avoid filing for bankruptcy and to help you get out of debt.

What Debts can be Included?

Some of the debts can't be erased with chapter 7 bankruptcy. For instance, if you owe child support, alimony, specific taxes, debt from a lawsuit, and other types of debts that apply, you may not be able to get rid of these. If these are the heaviest of your debts, filing for bankruptcy may not be that beneficial. Make sure you have all of your debts ready for the lawyer to look at for your consultation.

Will Hindered Credit be a Big Problem?

Once you file for bankruptcy, and your application is approved, you will have damaged credit and the bankruptcy will remain on your files. This means it will be very difficult to get any type of loan or credit card, and people who pull your credit will see that you didn't pay past debts. You have to be ready to commit to having hindered credit.

There are a lot of different things that you have to worry about when you are filing for bankruptcy, but your lawyer will go over all your finances to see if it's right for you, and to help you with the applications. Talk with your local chapter 7 bankruptcy attorney to see what they think is best for your financial future and your debt, and to take action so you can get the relief that you need.

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is bankruptcy a smart business move?

America is supposed to be the land of opportunity. What do you do when you try to take advantage of an opportunity that ends up costing you more than what it is bringing in? Sometimes, a business that you start just doesn't work out as you had hoped. It could be that you don't have enough experience or it could be that the market goes bad. Whatever the reason for the business not doing well, you will have to think carefully about your next step. Is bankruptcy the only way to get through this difficult time without losing everything you have worked for?