Is Bankruptcy for Me?
How Can I Be Sure Bankruptcy Is Right For Me?
Filing for bankruptcy is not something to be taken lightly. It does have ramifications, such as impacting your credit score, and your ability to obtain credit (including home and auto loans). We will carefully walk you through this process for you have a clear understanding as to whether or not this is the proper path for you.
For these, and other reasons, prior to filing, you will need to consider the following:
- If you have not done so previously, create a detailed budget of where your money goes, and determine if there are any obvious savings you can make. (This will be required as part of the mandatory credit counseling class all consumers are required to complete prior to filing.)
- Have you prioritized your payments? The first bills you should pay every month should be house and car payments. For most people, these are their most valuable assets, and a good payment record will be very helpful. The last payments you should prioritize are credit cards. Should you determine that filing is the best option, stop using the credit card immediately! You can then usually stop paying them as well as these unsecured debts will be wiped out, so stop throwing good money after bad.
- Consideration of the impact on your credit score must be taken into account. Many people who are considering bankruptcy probably already have had difficulty making payments, and do not have a good credit score. Although bankruptcy can stay on your credit report for several years, it also shows that those old debts are no longer your responsibility.
- Once you have considered your options and determined that bankruptcy is the correct course of action, don’t wait. If you have determined that you can not repay your debt and you are simply falling further into the abyss, it is time to file. The sooner you do, the sooner you can begin a fresh start.
- For the average person, filing for bankruptcy is frightening and complicated. I am a professional bankruptcy attorney. This is what I do, and I do it very well. I provide an initial free telephone consultation, so don’t be afraid to call and find out what your rights are.
- Finally, before we meet, do your homework. Be prepared to ask me all the questions you have been worrying about, but also put together as much documentation as you can, including what you owe (and to whom), your monthly expenses, your investments (including retirement) and the (estimated) value of any personal property.