Financial struggles are a fact of life for many people. Those with financial lows and highs that start to take over their life will want to consider filing for bankruptcy. If you are in a low financial period, you might be wondering how much debt you should have to file for bankruptcy. The truth is that there is no minimum debt threshold you need to reach before you can file. However, it is important to keep in mind that filing for bankruptcy is a serious decision that will impact your financial life for years. Thus, it is important to proceed with caution and make sure you weigh your options before you make your final decision. If you can’t decide, it is best to talk to an experienced Charleston, WV bankruptcy lawyer. Your lawyer will evaluate your financial situation and help you decide which type of bankruptcy to file.
Signs Bankruptcy Might be a Good Option for You
Bankruptcy can give you relief if you have been overwhelmed with debts and help you start a new life. But, before you file for bankruptcy, it is best to consider the following factors:
- Current financial situation. Before you declare bankruptcy, take a good look at your financial situation first. Do you have a regular income? Do you have a stable job? Do you have a medical or financial obstacle that can be a factor in the near future?
- Your ability to manage without filing bankruptcy. Ask yourself if you could manage without filing bankruptcy. Perhaps you can use the services of a credit counseling service to help you manage your debt or help you through a debt management program. Just ensure you choose a trusted service approved by the U. S. Trustee in Bankruptcy.
- Creditor negotiation. If you enter into a debt management program, it will contact your creditors for you and try to negotiate with them. The service may work with your creditors to consolidate your debt and institute one payment every month. Also, you can choose to consolidate your debts with a loan that covers them all. Or negotiate with your creditor to accept smaller payments over a longer period.
Why Consult an Attorney
If your debt has gotten out of control and you can’t improve your situation, it may be time to consult a bankruptcy attorney. Working with an attorney may be the best decision if you are constantly getting calls from collection agencies, facing lawsuits from creditors, and facing repossessions.