Filing for Bankruptcy: Things to Consider Before Declaring Yourself Bankrupt
Declaring bankruptcy can have a significant impact on all aspects of your life. If you file for bankruptcy at the right time and in the right way, it can help you in getting your finances back in order. However, bankruptcy filed too soon or too late can work against you. Moreover, you may not even need to go for this option at all.
If you are wondering whether you should file for bankruptcy, here are crucial things to consider before you make a decision:
- Negotiate with Creditors – The majority of creditors prefer settling debt instead of having it discharged in bankruptcy.
- Opt for Credit Counseling – Credit counselors can help you get lower monthly payments and interest rates. This is a good bankruptcy alternative if negotiating with creditors doesn’t help.
- Outstanding Medical Bills – Medical bills are among the leading causes of bankruptcy. If your medical bills are not covered by your health insurance plan, bankruptcy offers relief by offering a three to five-year repayment option or completely discharging them.
- Protecting Assets – Consider bankruptcy if you don’t have assets or if they are worth less than your debt. If the assets are loan secured, bankruptcy can protect those assets.
- General Savings – Child support, alimony, and other public benefits are typically protected, but if you have no general savings, then declaring yourself bankrupt might be the only option for you.
Each case is different, which is why getting expert legal help is crucial for making this tough decision. Let Moreno and Associates assist you. Our team will assess your situation and determine whether or not bankruptcy is the right solution for you.