Is Bankruptcy the Best Choice? 3 Questions To Ask Yourself

Bankruptcy Basics: When Should You File for Bankruptcy? | legalzoom.com

Being buried in debt can take a severe emotional toll that seeps into every aspect of your life. Constant calls from creditors and collection agencies make a seemingly innocuous ringing phone a reminder of your situation. In this situation, many people turn to bankruptcy for relief. Before you make a decision to go down that path, ask yourself these three questions to see if it is the right one for your situation.

1. Have You Tried To Negotiate Debt?

Creditors don’t want you to default on your obligations. In fact, many are willing to work with you to lower interest rates or develop a structured repayment plan. If you haven’t pursued this avenue, now is a great time to do that. It may be the help you need to regain control of your finances and start paying down debt.

2. Do You Have Any Hope of Repaying Your Current Debt?

This may sound pessimistic, but the reality is that many people have incurred debt that they cannot reasonably foresee paying off. If that is your case, then reaching out to Maryland bankruptcy attorneys to discuss your options could be a viable solution to get you back on track.

3. Can You Change Your Spending Habits?

Unless you are prepared to change the habits that got you into this situation, you are very likely to find yourself back in debt. Only the next time, bankruptcy may not be a solution. This may not apply to individuals who accumulated large medical bills or had an unplanned setback like job loss. However, even those experiences can teach the importance of setting aside extra money for emergencies. If you haven’t already, go ahead and enroll in a class to learn money management skills.

Bankruptcy is not something to be taken lightly. However, if you answered yes to these three questions and are still facing a mountain of debt, it may be the right solution for your financial troubles.

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