Is Bankruptcy The Best Option For You?3 min read
Thousands of households find themselves drowning in debt each and every day. Deciding how to manage your debt, get the creditors to stop calling and reduce the stress you experience is a big decision. There are a number of debt solutions, but with the right bankruptcy advice, you may find this is the best option for you moving forward.
There are a number of factors to take into consideration once you’ve taken onboard the bankruptcy advice, to determine if you feel this is the best choice to help you get debt free and start your life with a clean slate.
The first thing that you will need to identify is whether you are eligible for bankruptcy. Bankruptcy isn’t suitable for everyone and if you are managing to pay your debts, but find yourself struggling or you have assets you can sell to pay back the monies, then chances are you will not qualify for this debt relief solution. In order to qualify, you need to be unable to repay your debts in any way which has resulted in you choosing this option to help you get control back of your life.
You need to ensure before filing for this debt relief solution that there is no chance that your situation will improve in the future. You may be choosing to file because one of the household members lost their job and it’s impossible to repay all the debts. If there is no chance the person will find a job in the coming months, then this may be the solution for you, but if they have already been called back for a second interview, you may be able to get back on your feet without the assistance of debt relief.
Ideally the majority of the debt that you have accumulated should be unsecured. If you are unsure what this means, you will need to know that secured debt is when you obtain a loan or other debt using a home as collateral, where unsecured is credit cards and smaller loans where you didn’t need to give an asset as collateral. With unsecured debts it is harder to repay should you fall into troubled times, secured debts you would be forced to sell your home to repay the amount your borrowed.
It is imperative that before taking onboard all the bankruptcy advice you receive and decide whether to go ahead that you fully understand what is involved and how choosing this debt solution can effect you in the future. When you choose bankruptcy it is recorded on a public register, you could lose your assets and in some cases, depending on the work you do, your job could be affected. You need to weigh this up before making any final decisions.
You need to look at all the options available to you, get some bankruptcy advice and then decide if this is the only choice you have to gain financial freedom. You should choose this option if it is your last resort. Remember that even if you choose this option and your statement is filed, you may not be approved.
Another important factor to bear in mind is that in addition to the possibility that your job will be affected, filing for bankruptcy doesn’t come free, you will need to come up with the free that needs to be submitted with your paperwork before your case is considered.
Finally seek the assistance of an experienced bankruptcy specialist who can help you through the entire process from completing and filing all the necessary paperwork and holding your hand throughout the process until you are debt free and back on your feet again.