How Do I Know When Filing for Bankruptcy Is My Best Option?

 Posted on April 17, 2020 in Bankruptcy

Bankruptcy can be a scary word and it can be even scarier if it is something you have been considering. Bankruptcy is still considered by some to be a taboo or something to be avoided at all costs. In reality, bankruptcy can be the best option for some people who are drowning in debt. Filing for bankruptcy does come with a few unfavorable consequences, which should be factored into any consideration when determining whether or not to file for bankruptcy. Speaking with a skilled Texas bankruptcy lawyer can help you understand your situation a little better.

To File Or Not to File?

It can be confusing to know whether or not you should file for bankruptcy. Every person’s situation is different, which is why every decision to file for bankruptcy is different. For the most part, you should consider filing for bankruptcy if you are unable to repay your debts after you have paid for necessities such as food, living expenses, and healthcare. However, there are a few other situations in which you may also want to consider filing for bankruptcy:

• You have considered debt consolidation. There are steps that you can and should take before making the decision to file for bankruptcy. If you have a lot of debt that carries high-interest rates, you should look into consolidating some of your debt at a lower interest rate. In many cases, this lowers the monthly payment and allows you to get a handle on your debt. However, if you still cannot afford the consolidated payment, you may want to look into bankruptcy.
• Your credit score is already low. Many people say that the only thing stopping them from filing for bankruptcy is the fact that your credit score and creditworthiness are impacted. However, if you already have a low credit score, you may be better off filing for bankruptcy and working on building your credit up.
• You are at risk of losing your car or home. If you are behind on mortgage payments or car payments, you risk having your property foreclosed on or taken from you. When you file for bankruptcy, the automatic stay is put into place which prevents any and all debtors from collecting from you while your bankruptcy case is processed. The automatic stay does not protect your home and vehicle forever, but it can be useful to help you get back on track after a bankruptcy.

A Kerrville, TX Bankruptcy Attorney Can Help You Assess Your Situation

If you are wondering if filing for bankruptcy could be right for your situation, you should speak with a skilled San Antonio, TX bankruptcy lawyer today. At the Law Offices of Chance M. McGhee, our team is here to help you determine whether or not filing for bankruptcy is in your best interest and if so, the right bankruptcy for your situation. Call our office today at 210-342-3400 to schedule a free consultation.

Sources:

https://www.nerdwallet.com/blog/finance/bankruptcy-best-option/

https://www.fool.com/investing/general/2014/01/26/how-to-know-when-bankruptcy-is-your-best-option.aspx