Are your New Year’s resolutions focused on achieving financial freedom in 2024? It can be suffocating if you are living under a lot of debt. If you are tired of being on this financial path, then it might be time to “clean the slate” and start fresh. Bankruptcy is one option to consider, but it’s best to talk to a bankruptcy attorney about your options.
Should You File Bankruptcy?
Here are a few indications that you might benefit from a bankruptcy filing this year:
· You are overwhelmed with debt
· Monthly payments are too high and you can’t keep up
· You’ve exhausted all other financial options to repay your creditors
· Creditors are suing for debt payments
· You are paying for life necessities with credit cards
· You are facing a potential foreclosure on your home
Most experts will agree that bankruptcy should be a last resort. But there are times when it makes sense, especially if a person keeps going backward financially – with little possibility of being able to turn the situation around on their own.
Short- and Long-Term Implications of Bankruptcy
Bankruptcy can be an effective solution for someone who can’t keep up with their financial situation. This process is designed for people who have unmanageable amounts of debt. Many of these debts can be wiped out by filing bankruptcy. But some types of debts don’t qualify, such as student loans.
While there are many immediate benefits from a bankruptcy filing, you also need to consider the long-term consequences.
For example, bankruptcy takes a toll on your credit score and can have a negative impact on your long-term finances. Filing bankruptcy can make it harder to get financing in the future. So, you might consider other debt management options if you are anticipating any big purchases in the coming years.
Talk to Our Legal Team to Learn About Bankruptcy
If you are considering bankruptcy or want to explore other financial strategies that might be helpful, then reach out to our expert team at Miles & Hatcher, LLP. We offer a variety of legal services to assist. You are invited to schedule a free consultation to learn more: (909) 481-4080.