In a perfect world, you’d be able to pay your bills on time, fill the gas tank when it’s low and enjoy time with friends and family. You wouldn’t wonder if you can also pay for groceries and your rent/mortgage. Unfortunately, the world isn’t perfect, and life doesn’t always go as planned. You may be considering bankruptcy as a way to wipe out debt and obtain a fresh start financially. At the Law Office of Terrence Fantauzzi, we’ve been helping clients create solutions and obtain debt relief for more than a decade.
If bills are piling up, creditors are calling, and you’re looking for a way out, here are some questions to ask yourself to decide if bankruptcy is right for you.
Do I Qualify for Chapter 7 or Chapter 13 Bankruptcy?
Determining whether you qualify for bankruptcy is the first step. However, keep in mind that filing bankruptcy can affect many aspects of your life for years. Bankruptcy law is complex. Choosing the proper chapter and appropriate timing for filing bankruptcy is essential to ensuring it works for you more than against you.
Is My Financial Situation Temporary?
We live in turbulent times. Illness and unemployment in the Los Angeles area are among the most common reasons personal finances spiral out of control. Medical bills can become overwhelming, but it may be possible to negotiate with certain creditors if your condition will or has improved. If you unexpectedly lost your job, do you have the skills to help you obtain another position? Depending on how creditors pursue collections, you may be able to consider other options besides filing bankruptcy.
Where Does My Money Go?
Do you know how much of each paycheck goes towards bills and necessities, such as utilities and rent/mortgage? How much do you spend on takeout, happy hour, and gas? If you haven’t set up a budget, you may not know where all your money goes. Using a budgeting program can help you see how you spend your money. Depending on your lifestyle, making small changes in your expenses can make a big difference.
Should I Talk With My Creditors?
Generally speaking, your creditors don’t want you to file bankruptcy, as they will not collect all of the money you owe. Many lenders have programs to help you stay afloat without filing for Chapter 7 or 13. Loan modification programs and fixed-rate, low-interest credit cards can lower your monthly payments, giving you some breathing room. Some programs may change the payment schedule or tie your payments to your income level.
Call Lawyer Terrence Fantauzzi Today
You may consider filing bankruptcy to be the last resort if you have financial problems, but it may be the best solution. If you’re considering bankruptcy, contact us to schedule a free consultation. We can sit down in person or online to discuss your situation and create a debt relief plan tailored to your specific needs.