Last Updated on February 26, 2024 by Nasir Hanif
Whatever your reason for considering bankruptcy, it’s never a decision to be taken lightly. After all, you’re potentially dealing with the consequences for years to come. It’s imperative that you know what to expect if you do decide to file for bankruptcy. Moreover, you should be able to understand whether bankruptcy is the right thing to do for your particular situation.
A bankruptcy lawyer from The Harris Firm, LLC, can walk you through all the steps of bankruptcy. Regardless of whether it’s Chapter 7, Chapter 13, or something else, your lawyer will give you the information you need to make a good decision.
Here are some questions you should ask yourself to know whether bankruptcy is right for you.
1. Do you make minimum payments on credit cards?
Credit cards are one of the biggest causes of personal bankruptcy. While it’s relatively simple to get a credit card, it’s also quite easy to rack up a substantial amount of debt on one. Paying the minimum balance is easy in the short term. But make no mistake, racking up that debt can come back to haunt you in the future if you don’t pay off your card on time.
2. Do you get frequent calls from bill collectors?
Frequent calls from bill collectors can make your life difficult. You may have your phone number on file with the service provider, but bill collectors seem to be able to get hold of you no matter how much you might pay. Sometimes this is unavoidable, but making it your habit to avoid calls won’t help you a single bit.
3. Do you pay for basic necessities with credit cards?
This is a huge money pit, so it’s not surprising that so many people end up in financial trouble. A lot of the time, basic necessities are bought on credit cards. While you might think you can afford them on your own, these purchases can really add up over time.
4. Have you considered debt consolidation?
Debt consolidation is one of the best ways to get out of debt, but many people either don’t consider it or choose not to pursue it. It’s often a good choice for someone who is drowning in debt. Debt consolidation involves taking out one loan to pay for all your debt, then paying off that loan over the course of several years.
5. Will bankruptcy actually resolve your debts?
There are a lot of obstacles that can come between you and your bankruptcy judgment. A person who is being sued by creditors might not be able to get a discharge of their debts, even if they file for bankruptcy. Similarly, it’s possible that those creditors could force you into court to resolve the debts later on. Your lawyer will inform you about the likelihood of these outcomes and help you decide if bankruptcy is right for you.