Deciding to declare bankruptcy is a big decision. It can provide relief for some people but it’s not for everyone. At The Law Offices of Paul Y. Lee we are here to offer unbiased information and to offer you our full support. Read on to learn about three factors we consider crucial when considering declaring bankruptcy, and then contact us at 951-755-1000 for your free consultation.
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Which of your debts are causing most of your troubles?
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Can you afford your monthly bills?
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Are creditors currently coming after you?
If you’re thinking about filing bankruptcy then you’re obviously having financial troubles. However, some people think of the big picture without looking at the real problems. Which debts are really causing you trouble? If most of your struggle comes from credit card debt then you’re likely to find that Chapter 7 bankruptcy works best for you.
On the other hand, if your main issues involve your home that’s in foreclosure or a car or truck that’s about to be repossessed then a Chapter 13 bankruptcy is more likely to be the best option. It can help you with your secured debts, such as your home or vehicle.
The third option of course is that you’re dealing primarily with debts that don’t fall into either of these categories. They may be federal income taxes, student loans, or child or spousal support. In that case, then there may not be a bankruptcy option that will work for you.
Another big factor in whether bankruptcy will work for you, and which type makes the most sense, is whether or not you’re able to pay your monthly bills. Start by figuring out how much your basic bills are, including rent or mortgage payment, groceries, utilities, etc. If you add those up and they’re more than your income, or about the same, then you’ll likely qualify for Chapter 7 bankruptcy.
If, however, you have more than $500 left after your monthly bills are figured in then the bankruptcy courts may come to the conclusion that you can pay back a portion of your debts. In this case, you may end up with a Chapter 13 bankruptcy plan. Once again, call The Law Offices of Paul Y. Lee at 951-755-1000 to get help with your specific situation.
Do you have creditors calling you, writing you, or even taking you to court? Are your wages currently being garnished? If either of these are true, then it’s likely that you should at a minimum speak to a bankruptcy attorney. The good news is that as soon as you file bankruptcy, these debt collectors are required by law to stop all attempts to collect debt from you. This includes most wage garnishments as well.
If you’re ready to take charge of your financial situation then you’re ready to call The Law Offices of Paul Y. Lee at 951-755-1000. We’ll start with a simple consultation during which we’ll go over your situation, explain your options, and answer your questions. If you decide to move forward then you can count on us to be with you every step of the way.
