If you’ve been struggling to pay off a considerable amount of debt for a while, you’re probably wondering whether declaring bankruptcy will help. While discharging debt can allow both individuals and business owners to regain their financial footing, it’s not the answer for everyone. Fortunately, you can determine if it’s the best approach for your particular situation by asking a few simple questions. Below are a few to start with.
What Does My Financial Future Look Like?
If you’re anticipating a major windfall or you have a fairly lucrative career trajectory, your financial struggles are likely temporary. If, on the other hand, you’re already working two, or even three, jobs and are unable to stay afloat with no end in sight, bankruptcy could provide a much-needed clean slate.
In addition to your future earning capacity, evaluate your current situation. Even if your circumstances are likely to improve in the coming years, there are a few scenarios that warrant bankruptcy regardless. For example, if you’re being sued by debt collectors, or you’re unable to meet basic needs because all your funds go toward paying back creditors, discharging debt may be in your best interests.
What Kinds of Debt Do I Have?
Unfortunately, certain kinds of debt are not typically dischargeable, even through bankruptcy. Examples include child support and alimony, student loans, criminal fines, court restitution orders, and certain tax debts. If much of your debt is comprised of these kinds of obligations, filing bankruptcy will not improve your financial situation.
How Could I Benefit From Declaring Bankruptcy?
Discharging debt through bankruptcy will allow you to achieve financial stability and stop living paycheck to paycheck. If you take steps to avoid ending up in an overwhelming amount of debt again and start rebuilding your credit immediately after filing, you can work toward your financial goals, from paying off non-dischargeable debts and purchasing a home to saving for retirement.
For guidance during every stage of the bankruptcy proceedings, turn to Daniel R. McComb Attorney at Law. Practicing out of Batavia, NY, this seasoned lawyer has been in the field for more than 35 years. His legal team provides a variety of services for clients throughout Genesee County. In addition to bankruptcy filings, he assists with personal injury suits, workers’ compensation claims, Social Security disability benefits, real estate transactions, and wills, trusts, and probate. To learn more about this attorney, visit his website or call (585) 343-2250.