It might be tough to decide whether or not bankruptcy is suitable for you. It may be a tremendous relief in some instances. In some situations, it may not be the case. You can depend on The Law Offices of Paul Y. Lee to give you honest, unbiased counsel no matter what your circumstance is. Read on to learn about three questions you may ask yourself to determine whether bankruptcy is a smart choice, and then call us at 951-755-1000 for a free bankruptcy consultation.
What types of loans are the most troublesome for you?
Of course, if you’re considering bankruptcy, you’re facing financial difficulties. Having said that, you should consider the larger picture. Which of your debts is the actual problem? Chapter 7 bankruptcy may be a viable choice for you if you have more credit card debt than any other type of debt. If you have problems such as a foreclosed house or a vehicle that is about to be repossessed, Chapter 13 bankruptcy could be a good option for you.
However, if your debt does not fall into one of these categories, bankruptcy may not be the best option. Student loan debt, for example, is not dischargeable in bankruptcy. Federal income tax may be dischargeable, although it isn’t always the case. Whether your debt does not include credit card debt and a house or vehicle that is likely to be repossessed, you should contact The Law Offices of Paul Y. Lee to see if there is a bankruptcy alternative tailored to your specific requirements.
Are your monthly payments too much for you to handle?
Are you able to meet your monthly obligations? Sit down and consider your monthly fixed expenditures, such as a mortgage or rent payment, a vehicle payment, and so forth. Then look at items like utilities, petrol, and food, which fluctuate. If you total up all of these expenses and they exceed – or are almost equal to – your monthly income, you may be eligible for Chapter 7.
If you do the arithmetic and find that you have at least $500 left after paying your monthly bills, the courts are likely to rule that you are capable of repaying a portion of your obligations. This isn’t to say you can’t file for bankruptcy; it just means that Chapter 13 is more likely to be your best option.
Do you have debtors that are putting you under a lot of stress?
Whatever your creditors are doing right now, whether they’re garnishing your wages, bringing you to court, or phoning you every day, they’re obligated by law to stop once they learn you’ve filed for bankruptcy. This is just another reason to seek the advice of a bankruptcy lawyer. We can explain what your creditors may and cannot do, as well as ensure that they are aware that you have filed for bankruptcy.
For those who do not work in the legal area on a daily basis, this can be a perplexing procedure. That is why The Law Offices of Paul Y. Lee are so valuable. Call us right now at 951-755-1000 for a free bankruptcy consultation.
