Bankruptcy is a financial tool that can help you get your finances back on track. Many people can be confused by the stigma of bankruptcy but we are here to help guide your decisions and help you make the best choice possible as it relates to your finances and debt management.
We understand when you are swimming in debt with no end or relief in sight, there is nothing more important than having someone you can trust to lead you out of this situation.
You’ve tried budgeting your income, taking on extra hours, cutting expenses, and you’re still struggling to pay all of your debts, each month. Maybe you have more credit cards than you can count, and you’re forced to continue adding debt just to pay the necessities. Perhaps you no longer answer the phone, knowing it’s not a friend calling, but bill collectors pressuring you for a payment or answer. You’re stressed and overwhelmed by the situation, but don’t know what else you can do!
What is bankruptcy?
Qualifying for bankruptcy is, simply, when you owe more than you can pay. It is not when you owe more than you would like to pay, but when your income simply cannot cover the debts to your name. Bankruptcy is a form of debt relief when individuals or businesses are able to cut down their debts or restructure payments of their debts while being protected from creditors in the federal bankruptcy court.
Two common types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. These chapter are simply chapters in the bankruptcy book and represent different scenarios under which a debtor can be protected. Discussing which type of bankruptcy is right for you is an important conversation to have with your bankruptcy attorney, once you’ve decided that filing bankruptcy is the right decision for your situation.
Should I declare bankruptcy?
Only a bankruptcy attorney can properly assess your situation and let you know if bankruptcy is a necessary option for you. However, the answers to these questions can help you better understand if your situation is likely to be appropriate for bankruptcy:
- Have you tried budgeting and still can’t seem to make a dent in your debts?
- Are debt collectors calling you?
- Do you have to use credit cards to pay for essentials?
- Are you only able to make minimum payments on your credit?
- Are you overwhelmed by your finances?
- Are you uncertain how much you even actually owe?
If you answered yes to two or more of these questions, you should assess your financial situation to decide if it’s time to call a bankruptcy attorney.
Struggling with debt you can’t pay?
Assessing Your Financial Situation
To assess your financial situation, you will simply be looking at what you have next to what you owe. First, inventory your liquid assets, like checking and savings accounts, but also stocks, bonds, vehicles, real estate, retirement funds, and other account funds. Include a rough estimate for each and add all of these numbers together.
Next, add up all of the debt and bills you owe, including student loans, your mortgage, your credit card statements. If the number of your debts is greater than the number of your assets, it might be time to consider filing bankruptcy.
Facing Bankruptcy can seem daunting, but with the right bankruptcy attorney to guide you, it can be the relief you need to get back on your feet. Take this opportunity to reorganize your financial life with a free consultation at Darrell Castle & Associates, PLLC.
Call us today at 901.327.2100 to get the help you need.