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Money problems are a part of life for many people. To stay afloat financially, it’s common for consumers to go into debt. This doesn’t mean it’s bad to finance everything. Most buyers can’t get into a new home without taking out a mortgage. Students face high tuition costs and often can’t pay without loans. Likewise, a lot of shoppers can’t buy new or even used cars without financing the vehicles. Credit cards and other consumer accounts are often the culprits. If your debts are causing you stress, and if it looks like there’s no way out, bankruptcy could be an option. This doesn’t mean it’s the only option.
Reasons to File Bankruptcy
People may file for bankruptcy either by choice or because of a court order to do so. It’s always better to be in the former group. To determine whether you should think seriously about filing, assess your finances. Tally up all of your obligations and total monthly payments on installments, credit cards and other loans. If you are getting behind and can only make the minimum payments at best, it may be worth it to explore bankruptcy.
Next Steps
When it’s clear that your debt has gotten out of control, start adding up your assets. This will help you see whether property and possessions would be enough to pay off your debts. While bankruptcy can offer a fresh start and wipe out debt, it doesn’t happen without some sacrifice on your part. You may have to part with your home, cars and other belongings in order to take care of your outstanding obligations. You should also speak to an experienced bankruptcy law firm in Memphis, TN about your plans. Don’t ever proceed with a bankruptcy without first consulting a lawyer. This professional can offer additional guidance and give you a snapshot of what to expect in this process. Your attorney can help you file the necessary paperwork and take you through each step more smoothly.
Alternatives
It may seem as though your debts are too high and that there’s no way to pay them off. Through deeper evaluation, maybe some other strategies could work instead of filing for bankruptcy. Speak to a financial adviser and determine whether you can take care of debts in other ways. Perhaps a second job would help you get back on track. Maybe you just need to adjust your spending habits. Do rush into a decision before evaluating all avenues.
Heavy debt can cause you to lose sleep at night, but there are solutions. Bankruptcy could be an important way to start over and have peace of mind.
Thanks to Darrell Castle & Associates, PLLC for their insight into bankruptcy law and heavy debt.