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New York residents experiencing financial difficulties may wonder if bankruptcy is a practical option. Being a good candidate for bankruptcy involves several factors, and individuals should consider the financial and emotional ways that filing for bankruptcy may affect their lives.
To discuss your concerns regarding bankruptcy, contact our bankruptcy attorneys at 518-272-2110 or fill out our contact form, we are eager to help you!
Prior to filing bankruptcy, a person should consider whether doing so is the best option for his or her financial situation. In order to determine if it is possible to keep paying your debts without declaring bankruptcy you should calculate the total amount of debt that is owed and the total amount of the payments that you need to make each month. Compare the total amount of your monthly payments to your current income to determine how much money is leftover to pay for other things. If your monthly income is less than the amount you need to live on, bankruptcy may be a good option. You should also consider whether your income is likely to change in the near future.
It is also important for you to look into the types of debts as that you have. It is normally permissible to discharge only unsecured debts in bankruptcy. These are debts such as credit card or medical bills that are not secured by a lien against any of your property.
Secured debts, or debts that are secured by a lien on a particular piece of property, typically cannot be discharged in bankruptcy unless you give up the property Other types of debts are also generally not dischargeable in bankruptcy, such as student loans, taxes owed and child support owed.
The decision of whether or not to file bankruptcy can also affect a person emotionally. Many people do not want to declare bankruptcy and may even feel a sense of embarrassment that they are unable to pay their debts. It is important to remember that even good, hardworking individuals may end up struggling financially when unforeseen circumstances such as an illness or unforeseen job loss occur.
When considering bankruptcy, you should assess your current level of emotional stability. If sleeping at night is a problem or creditor calls are reaching harassment levels, it might be time to consider bankruptcy. Debt can also strain relationships and if debt is causing your current relationships to deteriorate, filing for bankruptcy may help.
Take time to reflect on the potential emotional reaction to bankruptcy, and compare it to your current feelings of financial struggle. Determine which situation is easier for you to handle emotionally.
An individual dealing with overwhelming debt can benefit from contacting a local bankruptcy attorney. The attorney can provide knowledge and guidance as well as assist with learning more about legal options for debt management.
Contact us for a free initial consultation to discuss your paternity dispute with an experienced lawyer.