Important Factors To Consider Before Filing For Bankruptcy

Bankruptcy is a powerful tool that can help you overcome considerable amounts of financial troubles. In fact, bankruptcy has helped more than 700,000 people every year take back control over their future. While bankruptcy offers a major benefit, there are several things to consider before applying. Take a moment to review your situation by considering these factors to determine if you should proceed with filing for bankruptcy:

Do you have a pending lawsuit?

If you have been unable to pay your bills for too long, debt collectors may file a collection lawsuit against you to retrieve the money you owe. Bankruptcy can be a good option in stopping a lawsuit from advancing while also illuminating any unsecured debt you may have.

Is your home or income at risk?

Wage garnishments and foreclosure are some of the biggest consequences of unpaid debt. If you are on the verge of losing your home to foreclosure, or you are about to have reduced income through wage garnishment, bankruptcy can help put those consequences to an end. If you face either of these consequences, you need to act immediately to protect your home and income.

Are you overwhelmed with medical debt?

The cost of medical treatment for critical illnesses or injuries is skyrocketing every day. An unexpected car accident or cancer diagnosis can make any savings you had to disappear immediately. When you owe tens of thousands of dollars or more in the span of a few days or weeks of treatment, paying it all back may seem impossible. Chapter 7 and Chapter 13 bankruptcy can discharge medical debt, and you may qualify for these options.

Is your income increasing soon?

Getting a job that pays better or a raise at your current employment may disqualify you from bankruptcy. Chapter 7 bankruptcy looks at your debt to income ratio, and if you are earning too much money, you might not qualify for this option.

Get the answers you need

An experienced bankruptcy attorney can help you review your unique situation and determine what options are available to you and how they may impact your future and financial freedom. If you suspect you need help overcoming your financial struggles through the benefits of bankruptcy, consult with a bankruptcy lawyer today and start getting the answers you can count on.