Thursday, July 5, 2012

How do you know when it's time to declare bankruptcy?

How do you know when it's time to declare bankruptcy?

As the ongoing housing crisis in Georgia and the country continues to influence our day to day lives, one of the ripple effects is the desperate financial situation of homeowners who continue to struggle with debt, sometimes even years after losing their homes to foreclosure.
Honest people who want to make good on their debts are increasingly overwhelmed as lenders continue to pursue deficiencies from years past. Attempting to make even the minimum payments on a sea of debt can wipe out retirement savings and max out credit cards. Then, many find it impossible to rebuild their financial lives.

It takes only a small shift in circumstance to make repayment impossible, loss of employment, divorce, a health or housing crisis. Remaining in denial about the futility of repaying all debt is stressful and takes a toll on relationships, family and health. When your liabilities are excessive, and your assets are minimal, if not gone, it is time to take a rational look at an often emotional, decision: Should you declare personal bankruptcy?

In today’s economy, personal bankruptcy filings are no longer seen as the end of your credit worthiness. These filings have become an acceptable solution to help you organize your debt, and free you from years and years of making minimum payments that will never go away. If you qualify, filing for Chapter 7 or Chapter 13 bankruptcy may be an effective way to restore your financial future and rebuild your dreams.
If you are considering bankruptcy the most important thing to do is to find a reputable lawyer to advise you.
For instance, in a Chapter 7 bankruptcy filing, you must meet a “means test” which will look at your income and debt to determine your true need for relief. These guidelines vary from state to state.

If you have tried to meet your obligations, but have been battered by economic forces beyond your control, the decision to take action and take control of your finances can be the beginning of a stable financial future.

If you need help, call King and King bankruptcy attorneys at 404-921-3790 today.