Questions to Ask Before Filing for Bankruptcy in Murrieta

by | Oct 16, 2013 | Attorney

Bankruptcy is a frightening concept; even the word sounds ominous. Seemingly every day, we hear about a once-solid business going bankrupt, and the list ranges from individuals to giant companies like Enron. Living in debt is ‘the new normal’, and it can be difficult to tell when Bankruptcy in Murrieta is an appropriate choice. Below are some questions you can ask yourself:

*     Am I only making minimum credit card payments?

*    Do collection agencies call me all the time?

*    Does the proposition of reviewing my finances worry or scare me?

*    Am I using credit cards to buy groceries or gas?

*    Have I thought of debt consolidation?

*    How much do I really owe?

*    Assessing the Situation

If you answered more than two of the above questions with a ‘yes’, you should give more thought to your financial situation. In the simplest terms, bankruptcy occurs when you can’t afford to pay all of your debts. To determine your position, take inventory of your assets, including stocks, real estate, bonds, retirement accounts, college savings and estimate the worth of each.

Next, add up your credit card statements and other debts. If your assets cannot cover your debt, Bankruptcy in Murrieta may be a viable way out of a tough financial situation. However, it should not be taken lightly, and should not be used as a “get out of jail free” card every time you get into debt.

Declaring Bankruptcy

There are two ways to go bankrupt, and the most common route is to file for bankruptcy protection. While not as common, your creditors can petition the court to have you declared bankrupt. There are different bankruptcy chapters to consider, each with its benefits and disadvantages. It’s best to consult a bankruptcy attorney who can help you find the best choice for your needs.

Bankruptcy is Difficult but Necessary in Some Cases

It can be difficult to admit that you cannot handle your debt alone, but US bankruptcy laws protect you and your creditors. The best way to handle debt is to face it head-on; ignoring creditor phone calls and unpaid bills won’t make them go away. Filing for bankruptcy protection is sometimes the best choice, and with the right lawyer, Bankruptcy in Murrieta can give you the fresh financial beginning you need.

Similar Posts