Do you think that bankruptcy might be a good idea but just are not sure? Because it is a big step, many Americans are hesitant to declare bankruptcy. Others may feel that they are diving into bankruptcy filing too quickly, wondering if other options were available that they could have tried.
How can you make this admittedly big decision? Look to others for help. Learn about five people who might be able to help you reach the right conclusion.
1. Bankruptcy Attorney
Perhaps the most logical person to turn to for advice about bankruptcy is an experienced bankruptcy lawyer. A good lawyer works in your best interest. After working with numerous clients, the attorney knows the types of debtors who can be most helped.
Legal counsel can also help you address unique considerations. If your debt is not yet all eligible for bankruptcy discharge — such as what often happens with tax debt — an attorney can help with the timing. Someone going through a divorce might need specific guidance on handling marital assets.
2. Trusted Friend
Many Americans go it alone with money and debt. But this may leave you struggling with a burden that could be helped by sharing it with others. You might be reticent to discuss your debt issues with anyone but look for a trusted friend who knows you well and will keep things in confidence.
Talk openly and honestly with this person about what you have gone through, what the origins of your debt are, and how it makes you feel. Bankruptcy is not a purely financial decision. You must also consider how your debt battle may affect you and your relationships.
If your conundrum is largely about finances, why not speak with someone who knows money matters? Accountants are trained in analyzing matters through a purely financial lens, and they are an objective third party who will work for you confidentially.
Meeting with an accountant is most beneficial for those who may have complicated financial circumstances. Someone with a family business, for instance, or who is going through a divorce may need help to understand how their finances would be affected by bankruptcy.
4. Credit Counselor
A mandatory resource when actually filing for bankruptcy, a credit counselor is a helpful person to get a better understanding of what it might take to avoid bankruptcy. Credit counseling is a resource you can utilize to gather all your debt, expense information, and income together and analyze it to see if it is sustainable or if the hole will just get bigger.
A credit counselor may not openly recommend bankruptcy, but they can show you the available options to reorganize and pay off debt. After looking over your situation and seeing what this professional comes up with, you will know whether or not you have considered all repayment options short of bankruptcy.
You might not automatically consider those to whom you owe debts as a resource, but their actions give you some valuable insights. If you try to renegotiate debt with your creditors but they are no longer willing to budge, you know you have reached the end of this option. If lenders are preparing foreclosure or repossession actions, the decision to seek relief may be made much easier.
As you look for direction from friends, professionals, and lenders alike, the right path will become clear. Why not start today by making an appointment with a bankruptcy attorney in your state? Armed with more information about your choices, you are sure to approach whichever decision you make with more confidence. Call Kalasnik Law Office to learn more.