How to know if I should File for Bankruptcy?

There are two different types of bankruptcy, Chapter 7 and Chapter 13. Understanding which one is right for you is as important as understanding if Filing for Bankruptcy is the right thing for to do.

If you live in San Diego, CA, I  strongly recommend consulting with a Bankruptcy attorney here in San Diego. They can help you review your financials in order to evaluate different alternatives like Debt Consolidation, Debt Management, or Filing for Bankruptcy.

Filing for Bankruptcy may seem like a very bad thing to do and many people mistake it as a crime or cheating the law.

There are laws that protect Banks and Financial Institutions but there are also laws that protect consumers as well. Financial difficulties can definitely hurt individuals, families, and even make a person suffer from a lot of stress causing illness and depression

If you owe more than what you own and there is no foreseeable way in which you can repay your creditors, then you should consider filing for bankruptcy.

With the rising cost of living, unemployment and shrinking salaries, many people are facing monetary hardships. They find themselves scrambling to make minimum payments or facing late fees.

Here are some common signs that your finances are getting out of control and maybe you should talk to an attorney about the possibility of filling for bankruptcy.

  • You missed several monthly payments on your mortgage, your car, credit cards
  • You don’t have the money to pay for rent
  • You don’t have the money to buy food and continue using credit cards
  • You put most charges on a credit card and then don’t have the money to pay or only make the minimum payment.
  • You don’t know how much money you owe
  • You lost your job and are unable to make monthly payments

When you talk to an bankruptcy attorney in San Diego, you should gather as much of your financial information as possible.

Here is some common paperwork your attorney may need to get an accurate picture of your finances.

  • pay stubs that show how much you make an hour and how many hours a week you work,
  • tax returns that show how much you make a year
  • statements from your Credit Cards or Creditors showing how much you owe and what the interest rate is.

The idea is to evaluate your income to debt ratio.  Your lawyer will use this to determine whether it is possible for you to make payments in a timely manner and get out of debt.

If you are filing for bankruptcy, talk to a bankruptcy lawyer in San Diego, and he will help you take the steps to make it as painless as possible and answer all your questions.