If you're in debt and trying to come up with a solution to improve your finances, you may be trying to figure out if filing bankruptcy is worth it or not. There are people who will tell you that bankruptcy will negatively impact your credit and while this is true, it won't leave a negative mark on your credit report forever. In fact, sometimes it's the best solution for people based on the situations they're in at that moment. There are a few different ways for you to figure out if filing bankruptcy is the right thing for you to do.
You're Currently Unemployed
You may have worked the same job for several years and never expected you'd end up unemployed, but if your job closed down or laid off a bunch of employees, you may currently be dealing with this unfortunate situation. If you're unemployed and having a tough time finding a job to replace the income you were earning, you've probably fallen behind on credit card bills and other important bills. If you're struggling to catch up and you're not sure when you'll find a new job, filing bankruptcy may help to ease some of the financial burden you're going through.
You Owe Thousands of Dollars to Creditors
Do you owe more than you could ever afford to pay back to different creditors? If you've maxed out a lot of credit cards, you could owe hundreds and thousands of dollars back to dozens of different creditors. If you're struggling to make even the smallest payment possible for these cards because you simply don't have the money to spend, you may want to talk to a bankruptcy lawyer about your options. There is a possibility you'll be able to file bankruptcy and avoid paying back any of the debt you owe, but it depends on the specific chapter you end up filing.
You're Struggling to Afford the Basics
If you're trying to make payments on some of your debt, but it's holding you back from being able to afford even the most basic necessities, you're probably looking for a way to get out of this frustrating cycle. Bankruptcy could be the best solution for you based on your current financial situation, especially if you're struggling to keep the lights on and the water running in your home.
These are some of the different reasons many people file bankruptcy. If you're dealing with one or more of these situations, it's something you should consider as a way of improving your financial situation and relieving some of your stress.
Contact an office like Molleur Law Office for more information.
Share14 February 2018
One thing I have always been good with is money. Even in high school, I always had a savings from my allowance and from working for the neighbors. I created this blog to help other young people understand the importance of financial responsibility even at a young age. If we start our adult lives knowing about financial responsibility, we can make it further in our lives before we suffer from the devastation of financial mistakes that can take years and years to pay back. Hopefully, what you learn here will help you avoid those financial mistakes and maybe help you recover from the ones you've already made.