The answer to if you should file is not an easy one to answer without a consultation. Every case is different and all options are on the table. There are a lot of factors that lead a person to bankruptcy, including:
- Loss of employment
- Unsurmountable unsecured debts
- Overwhelming medical bills
- Pending lawsuits
- Wage garnishing
- Delinquent taxes
Are your debts greater than your assets?
One of the best things you can ask yourself when deciding if bankruptcy is for you is “Are my debts greater than the value of my assets?” It is important to add up your liquid assets, including the value of your home, car, personal savings, retirements funds, investments, and whatever else may hold value. Next, add up your liabilities, or bills, including loans, credit card debt, medical bills. If your liabilities are greater than the value of your assets, you need to speak with a lawyer to discuss your options. This does not definitively mean that you need to file, it just gives you a clue that you need to consider it.
Levels of immediacy
To truly understand if bankruptcy is an avenue you wish to travel, it is important to consider your situation. If you can pay some bills and not others, you may need to file for bankruptcy. That being said, it is important to explore debt consolidation and debt restructuring because these options may be good alternatives to save you the future repercussions. If the bills are piling up and you cannot get ahead, it may be time to consider filing. If you are facing foreclosure of your home, wages are being garnished, and your car could face repossession, bankruptcy may be your only option. This important step needs the attention of an experienced bankruptcy attorney.
Before taking action, it is important to discuss your legal situation with an experienced attorney. Contact The Radol Law Firm to discuss your legal matter further.