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Decide if bankruptcy is right for you

On Behalf of | Dec 5, 2022 | What Bankruptcy Can Do |

When you realize that you need some financial help, you might look to bankruptcy to end your problems. While bankruptcy is the best possible scenario for many people near Memphis, it doesn’t necessarily get rid of all debt, and you should only enter into a bankruptcy deal once you’ve sorted through all of your options and fully understand what you can expect from a bankruptcy.

Some facts about bankruptcy

One of the most important things that you need to realize about debt and bankruptcy is that filing for bankruptcy won’t get rid of all types of debt. For instance, any debt incurred from a malicious act will be still be your responsibility to pay back. Additionally, child support, tax liens, and court fees will still be your responsibility to pay back.

You should also understand that are several types of bankruptcy, the act of declaring bankruptcy will affect your credit, you don’t lose all assets in a bankruptcy, you have to pay for bankruptcy, you’ll have to meet with creditors in the event that you file for bankruptcy, the process takes time, and not everyone qualifies for bankruptcy.

Using bankruptcy to get out of credit card debt

While bankruptcy is one way to get out of insurmountable credit card debt, and while bankruptcy might be your best solution, you should exhaust other options. Before you choose bankruptcy, you should try to pay off your debt amounts using the snowball method. You can also consolidate your credit onto a low-interest account, and you can work with your creditors to lower the amount that you owe. You should always contact your creditors before you try to file for bankruptcy because you might find a solution. Creditors would rather get some of their money back than completely lose out because you file for bankruptcy, so they might be open to offering a hardship program.

When you’re not sure if bankruptcy is the right option for you, take a close look at all of your debt before making any decisions.