Deciding to declare bankruptcy is a big decision. It can
provide relief, but it can also be a complicated process. At King & King bankruptcy attorneys, we are here to offer unbiased information and support so you
can make the best decision for your future. Here are three factors to review
when considering declaring bankruptcy.
Which of your debts
are causing most of your troubles?
If you’re thinking about filing bankruptcy, then you are
aware of your financial troubles and are thinking about taking the first step
to financial freedom. The next step is to decide which debts are really causing
you the most trouble. If your struggle comes from credit card debt, then you’re
likely to find that Chapter 7 bankruptcy works best for you.
On the other hand, if your main issues involve your home
that’s in foreclosure or a car or truck that’s about to be repossessed, then a
Chapter 13 bankruptcy is more likely to be the best option. It can help you
with your secured debts, such as your home or vehicle.
The third option of course is that you’re dealing primarily
with debts that don’t fall into either of these categories. They may be federal
or state income taxes, student loans, or child or spousal support. In that
case, call us to discuss a bankruptcy option that will work for you.
Can you afford your
monthly bills?
Another big factor in how bankruptcy will work for you, and
which type makes the most sense, is whether or not you’re able to pay your
monthly bills. Start by figuring out how much your basic bills are, including
rent or mortgage payment, groceries, utilities, etc. If you add those up and
they’re more than your income, or about the same, then you’ll likely qualify
for Chapter 7 bankruptcy.
If, however, you have quite a bit left in your budget after
your monthly bills are figured in, then the bankruptcy courts may come to the
conclusion that you can pay back a portion of your debts. In this case, you may
end up with a Chapter 13 bankruptcy plan. Once again, call King & King to
get help with your specific situation.
Are creditors
currently attempting to collect?
Do you have creditors calling you, writing you, or even
threatening action? Are your wages being garnished? If so, then it’s likely
that you should at a minimum speak to a bankruptcy attorney. The good news is
that as soon as you file bankruptcy, these debt collectors are required by law
to stop all attempts to collect debt from you. This includes wage garnishments
as well.
If you’re ready to take charge of your financial situation,
then you’re ready to call King & King at 404-524-6400. At your free
consultation we’ll go over your situation, explain your options, and answer
your questions. Call us a fresh start today.
