Trying to manage debts on a month to month basis can be tough. Sometimes it is so tough that you might need to look for other options for dealing with your debts. People who have a lot of debt often consider filing for bankruptcy as a way to get out from under their mountain of debt. But how is someone supposed to know whether filing for bankruptcy is a good choice for them? If you can tell that your financial situation is unlikely to change without you taking some sort of drastic action, like filing for bankruptcy, then you should start asking yourself questions that can help you decide whether bankruptcy would be a good idea in your particular situation.
Questions You Should Ask Yourself About Bankruptcy
Do You Have Any Other Options Besides Filing For Bankruptcy? If you do not have any cash reserves or assets that you can liquidate that you can use to pay down your debt, then bankruptcy might be a good choice for you. Many people consider credit counseling as an option they explore before seriously considering bankruptcy filings. If you have tried credit counseling, but your debt situation is unbearable, schedule some time to talk to a bankruptcy lawyer.
Do You Qualify for Bankruptcy? There are certain eligibility requirements that must be satisfied in order to qualify for bankruptcy as a debt relief measure. If you have a low level of income, very little disposable income, and an overwhelming amount of debt, you are likely eligible for bankruptcy. So long as you make less than the mean income level for the state of Michigan, you should be considered eligible for bankruptcy.
Would You Be Able to Walk Away From Your Debts? Some people feel a sense of pride or accomplishment when they pay their debts, and some people feel like it makes them a failure if they discharge their debts through bankruptcy. You have to take a good hard look at how you feel about the idea of discharging your debts through bankruptcy. If you feel like you would not have a problem letting your debts go, and that it would not make you feel negatively about yourself, then bankruptcy might be a good choice for you.
Do You Understand The Consequences Bankruptcy Has on Your Credit? It is important that you understand that bankruptcy will have an impact on your credit worthiness, and that it can take many years to restore your credit score. It is not an impossible feat to rebuild your credit, but it does take time, dedication and effort on your part.
The first step to taking control of your debt situation is to contact an experienced Michigan bankruptcy lawyer. At the office of Karen E. Evangelista, PC we know how to guide clients through the decision making process. If our clients choose to go forward with bankruptcy proceedings, we will be by their side the entire way. Please feel free to contact us today at 248-652-7990.