If you’re considering filing for bankruptcy, there are a few things that you’re going to want to think through before you move forward with this option. Because while bankruptcy might sound good on paper, when you really sit down and think about everything that it’s going to entail and the consequences it could have on your life, you’re going to really want to be sure that this is the best option before you go forward with it.
To help you in making this decision, here are three things to consider before filing for bankruptcy.
Do You Have The Appropriate Type Of Debt
Bankruptcy isn’t a fix-all for all kinds of debt. Only certain kinds of debt can be cleared through filing for bankruptcy. So before you decide to go with this option for handling your debt, you’ll want to be sure that it actually can apply to the type of debt that you have.
In general, bankruptcy can work to cancel most forms of consumer debt. This includes things like credit card debt, medical bills, personal loans, and unpaid rent. However, it won’t work to cancel debt for things like unpaid taxes, certain kinds of student loans, and any unpaid alimony, child support, or criminal fines. Knowing what kind of debt you have and how bankruptcy might apply to that type of debt can help you determine if this is going to be a wise course of action for you.
Your Other Options
When you’re in way over your head with debt, filing for bankruptcy isn’t your only option. There are other paths that you can take to help you start to pay back your debts and get on firmer financial footing.
One option you might want to try is speaking with your loan officer. They may be willing to work with you so that they don’t lose money as a result of you filing for bankruptcy. You can also look into other debt consolidation or settlement possibilities. Having small monthly payments that you make on debt that you’re no longer adding to can make a big difference in your debt over time.
If It’s Something You Want To Handle On Your Own
If you do decide that filing for bankruptcy is going to be the best bet for you, you should think about whether this is something that you want to try handling on your own or if you’ll want to hire a bankruptcy lawyer. The process of filing for bankruptcy can be very complicated and take up a lot of your time and money, especially if you don’t know what you’re doing. But with the help of an experienced bankruptcy lawyer, you should be able to get through this process much more easily.
If you’ve been thinking about filing for bankruptcy, consider using the tips mentioned above to help you in making this decision.
