Is Bankruptcy My Only Option?

Are you weighed down by debt? Are your monthly payments more than you can afford? Are your expenses and payments amounting to more than your income every month?

Bankruptcy may be the only way out of your current financial struggle—but it could also make things even worse. While filing for bankruptcy is often the only solution for people who are overwhelmed by debt, sometimes it only makes your current financial nightmare even more challenging. That’s why it is critical to make bankruptcy-related decisions on the basis of sound legal advice and wise counsel.

Considering bankruptcy? Don’t rush into it—let us help. Call (770) 629-0154 today to speak to a bankruptcy lawyer from Busch, Reed, Jones & Leeper, P.C.

Why Bankruptcy May Not Be the Solution to Your Financial Troubles

There are some problems bankruptcy can fix. Bankruptcy may be the best way out if your debt repayment eats up such a large percentage of your monthly income that you are unable to cover basic costs and expenses like housing, food, retirement savings, etc. However, it isn’t the only option and it isn’t always the best option for people struggling with debt.

This is true for several reasons:

  • Bankruptcy is financially devastating.
  • Bankruptcy may discharge some debts, but you may still be on the hook for others.
  • Bankruptcy may leave you open to adversary proceedings, in which creditors whose loans to you have been discharged can take you to court and still require you to pay what you owe.
  • Bankruptcy will hike up the interest rates on all of your auto loans, mortgages, and other lines of credit, at least for the next 7-10 years.
  • Bankruptcy stops contact from creditors, but there are other, less financially damning ways of getting relief from collectors under the Fair Debt Collection Practices Act (FDCPA).

In short, there are other ways out of debt than just filing for bankruptcy. You may have other options when seeking to repay large sums owed or seeking relief from the barrage of letters, phone calls, emails, and other contacts from your creditors. In fact, sometimes doing nothing is the best thing you can do when facing more debt than you can handle.

Curious as to how that works? Call (770) 629-0154 to speak with a Marietta bankruptcy attorney.

When Filing Bankruptcy May Be the Best Option

However, there are other instances in which bankruptcy may be the better option, including when:

  • Your monthly income is less than the average in your region.
  • Your problematic debts are unsecured and have no collateral attached, such as personal loans, credit cards, and the like.
  • Your total monthly payments exceed your monthly income or require such a large portion of your income that you are unable to set aside money to afford food, clothing, shelter, etc. for yourself and your dependents.
  • You are unlikely to experience a job change, promotion, or other income increase anytime soon.
  • You have made a sincere, notable attempt to pay back your debts and make monthly payments consistently.
  • Your inability to pay your debts puts your home, car, or other important assets in jeopardy.

Experienced Bankruptcy Attorneys Serving Individuals and Businesses in Marietta

The best way to know if bankruptcy is right for you is to connect with a bankruptcy lawyer who can help you evaluate your case and take the best steps forward. If bankruptcy is right for you, we can help you assess your options, weigh the differences between Chapter 7 and Chapter 13 bankruptcy, and answer any other questions you may have.

Fill out this short questionnaire to connect with one of our Marietta bankruptcy lawyers today.