Making the final decision about whether or not bankruptcy is right for you is a difficult one. In some cases, it can be a huge relief. In other cases, it may not. No matter what your situation is, you can count on The Law Offices of Paul Y. Lee to offer you honest, unbiased advice. Read on to learn about three things you can ask yourself to decide if it’s a good idea to declare bankruptcy and then reach out to us at 951-755-1000 for a free bankruptcy consultation.
- What type of debts are causing you the biggest troubles?
- Are your monthly bills overwhelming?
- Do you have creditors putting pressure on you?
Of course, if you’re even thinking about filing bankruptcy then you’re having money issues. That said, you want to think about the big picture. Which of your debts are really the issue? If you have more credit card debt than any other kind, then Chapter 7 bankruptcy may indeed be a good option for you. If you have issues like a home in foreclosure or a vehicle that’s on the verge of being repossessed, then Chapter 13 bankruptcy may work for you.
However, if your debt doesn’t fall into these categories then it’s possible bankruptcy may not be the right choice. For example, student loan debt cannot be discharged in bankruptcy. Federal income tax may be dischargeable but often it isn’t. If your debt doesn’t involve credit card debt and a home or vehicle on the verge of being taken back, then you’ll want to talk to The Law Offices of Paul Y. Lee about whether or not there’s a bankruptcy option designed for your unique needs.
Can you pay your monthly bills? Sit down and look at the fixed costs you have every month, such as a mortgage or rent payment, car payment, etc. Then look at things that fluctuate, such as utilities, gas, and groceries. If you add all of these costs up and it’s more than what you make on a monthly basis – or if it’s nearly the same – then you may qualify for Chapter 7.
If you do the math and have at least $500 left once your monthly expenses are taken care of then the courts are likely to say that you’re capable of paying back part of your debts. This doesn’t mean that you can’t declare bankruptcy, it just means that Chapter 13 is likely to be the best option for you.
No matter what creditors are doing today, whether they’re garnishing your wages, taking you to court, or calling all day every day, they are required by law to quit the moment they’re informed that you’ve declared bankruptcy. This is just another reason to consult with a bankruptcy attorney. We can walk you through what your creditors can and can’t do and we can make sure that they’re informed that you’ve filed bankruptcy.
This can be a confusing process for people who don’t work day in and day out in the legal field. That’s why The Law Offices of Paul Y. Lee is such an important asset. Call us today at 951-755-1000 and let us give you a free bankruptcy consultation.
