Should You Consider Bankruptcy?
Debt is an issue that most Americans face each year. While some have manageable debt that they are able to budget payments for and pay off in a decent amount of time, others have insurmountable debt that they see no way out of. It is important that you understand how bankruptcy affects you, your credit, and your future. If you are in debt up to your eyeballs and see know way out, it is time for you to ask yourself if you should consider bankruptcy.
There are four main signs that you should consider bankruptcy:
- No matter what you do, your debts are not decreasing. If you have been paying on your debts but the balances just will not go down, it is time to consider bankruptcy. In many cases where high interest in involved, only paying minimum payments can actually increase the full amount that you owe. If you are unable to pay more than the minimum payment(s) for your debt and you are getting no where near your final balance, filing for bankruptcy may be the best solution for a clean slate.
- If you are dipping into your retirement in order to pay off debt, it is probably a good time to consider filing for bankruptcy. Once you begin stealing from yourself, you are doing yourself no good. While it may seem like a short-end solution, paying off debt fast with money that is meant for retirement, is truly only hurting your future. Bankruptcy can often provide the relief that you need now without using precious retirement funds to pay off debts.
- If you have dependents and your debt is out of control, it is time to consider bankruptcy. Women who are single parents are the most likely victims of bankruptcy. However, filing at an appropriate time instead of waiting until it is a necessary last resort can be a beneficial financial decision. Other people who have children, a disabled spouse, or elderly parents who are dependent on them must also weigh the advantages of bankruptcy. The more people that are dependent on you financially, the greater likelihood that a financial disaster will strike. If you are already facing insurmountable debt, considering bankruptcy can help to protect yourself and those you love.
- If you are upside down on your home, it is time to consider bankruptcy. It is estimated that 7 million Americans remain underwater on their home mortgages. Bankruptcy is one option for providing relief that homeowners need.
If you are facing insurmountable debt, do not lose hope. Contact Gingold & Gingold, LLC today to schedule an appointment for legal advice. Knowing when it is beneficial to you to file bankruptcy can help protect yourself, your family, and your future.