Understanding whether or not you are a candidate for bankruptcy most likely includes reviewing your situation with a qualified bankruptcy attorney. A legal expert may be able to advise the best course of action based on your circumstances. Yet, there are a few factors that could have an influence on your decision that you can review in better detail.
Many people experience differences with their finances. One consumer may owe creditors thousands in outstanding debt but deal with anxiety, sleepless nights and frustration in trying to pay it back. Another consumer may owe the same amount but feel determined to pay it off in the future. Yet, consumers who feel their debt is out of control, overwhelming or feel the pressure from creditors may feel declaring bankruptcy is a viable option.
First you’ll want to understand how bankruptcy can help based on your situation. The decision to file may be influenced by future, financial and emotional implications. Review your finances and understand where you stand. Know how much you owe to creditors and understand whether or not you are making enough to pay them back. Can you free up income to make additional payments or earn more money?
How is your debt affecting you emotionally? Many feel they can’t stand the fact they owe so much. The pressure from creditors may even make them uneasy or cause conflict with their spouse. Will filing bankruptcy help you feel better? You can also seek advice from an approved credit counselor or non-profit credit counseling agency who can assess your situation and help come up with a conclusion.