Can You Avoid Bankruptcy?
5 Questions to ask if you are afraid you will have to file for bankruptcy:
Filing for bankruptcy is a life-changing decision. The tipping point towards bankruptcy is too much debt. Answer these questions before you move ahead:
Have I exhausted all other remedies to save my financial situation?
Investigate Credit Counseling, Consolidation options, hardship programs with creditors.
What debts can and can’t be erased by bankruptcy?
Only mortgage and consumer debt can be included in a bankruptcy. Overdue taxes and government student loans are cleared in a bankruptcy judgement.
What can I lose in a judgement?
All assets are at risk in filing bankruptcy. Home, cars, savings, real estate property, etc. How you’ve handled payments to the financers impacts what must be relinquished.
How long is the bankruptcy process?
Once you file it takes 3-6 months. Before that, however, there is a period of time spent doing everything you can to avoid bankruptcy. So, the process can be a good 1-2 years. If your finances are more complex, it can be more drawn out.
What will this do to my credit and purchasing power in the future?
Your credit score will take a big hit. Bankruptcy will be on your credit report for 7 years. It will effect your ability to finance a car, rent an apartment and access credit.
Contact me to book a 30-minute conversation to talk about how to avoid bankruptcy all together. We’ll explore ways to return positive cash flow to debts and savings.
