It is rare to find a person who actually wants to file for bankruptcy. Instead, people find themselves in difficult financial situations and are willing to do what it takes to move forward in a positive direction. In some cases, that involves filing for bankruptcy. One of the first questions we often get at The Law Offices of Paul Y. Lee is whether or not a person has enough debt to make bankruptcy “worth it.” Read on as we answer this question and then call us at 888-748-0025 if you would like a free consultation.
Deciding if You Have Enough Debt to File for Bankruptcy
There is no specific amount of money that is “enough” to file for bankruptcy because different people are affected differently by the same amount of debt. It depends on the size of your household, your income, and the type of bills you are dealing with. It is not likely that being $2,000 in credit card debt is worth filing for bankruptcy, but if you have three or four credit card companies calling you, threatening you, and being aggressive, then bankruptcy might make sense.
Think of it like this: Being $10,000 in debt is very different for a person who makes $35,000 per year compared to someone who makes $500,000 per year. That said, there are warning signs that often indicate that bankruptcy could be a good choice.
How Much Are You Paying on Your Credit Card Bills?
If you are only able to pay the minimum on your credit card bills, month after month, or if you are using one credit card to pay another, or if you are transferring balances to get lower interest rates, then you might be a good candidate for bankruptcy. If you have had maxed credit cards for years then you should call a bankruptcy attorney today.
Do You Regularly Miss Payments?
You might miss a payment once in a while, but if you are doing so regularly then it is likely that you cannot continue to live at your current level. This means you should either find a way to make more money or a way to pay less in monthly expenses. This might be a good time to consider filing Chapter 7 or Chapter 13 bankruptcy. This could give you the fresh start you need.
Call Us Now to Find Out What Your Best Options Are
There are other factors that will affect whether or not it makes sense for you to file bankruptcy, such as the type of debt you have and whether your situation is temporary or seems to be current. The easiest way to find out what your options are is to contact The Law Offices of Paul Y. Lee at 888-748-0025 for a free consultation.