By: Darrell Castle
Are you facing a foreclosure? Are you about to lose your car? Are your wages being garnished? There are many things that can make you a candidate for bankruptcy.
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Are you a candidate for bankruptcy? How do you know whether you are or not?
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and that question is pretty simple, isn’t it? It’s pretty obvious, isn’t it?
Well, yes and no.
First off, are you behind on your house payment? Is the bank threatening to foreclose on your house? Is the repo man looking for your car because you’ve missed car payments? Are you being sued on your medical bills and those types of things? Are your wages being garnished?
Those are all obvious things and obvious reasons why you may consider bankruptcy, but it’s more complicated than that.
Let me ask you another question.
How long did it take you to go from zero debt to where you are now? How many years?
How long do you think it should take you to get back to zero debt and get out of the problem that you may find yourself in now?
Well let me explain something to you.
If you take your income – if your income minus your living expenses does not exceed the sum of all your debt payments, then you’ll never get out of debt.
Now let me break that down for you.
If your income minus your living expenses – that would be your mortgage or rent, car payment, groceries, clothing, insurance, utilities, things that your children need every day and those types of things that you have to spend money on. Those are living expenses.
So, income minus living expenses. Does it exceed the sum of all your debt payments?
If not then you’ll never get out of debt and you’ll fall further and further behind for the rest of your life.
So why not consider bankruptcy? Why not at least consider it? Consider a bankruptcy and getting a fresh start, and then a credit rebuilding program like 7 Steps to a 720 to get you back where you need to be.
That would be a good way to start the new year, folks.