Is Bankruptcy Right for You?

Every year, thousands of people file for bankruptcy to seek financial relief. Filing for bankruptcy can help certain individuals overcome their financial challenges, but it's not right for everyone. Before filing for bankruptcy, it's important to carefully consider whether this is the right option for you. Fortunately, there are other options available if you are not a good candidate for bankruptcy.

Bankruptcy should never be seen as a quick fix to your financial problems. In fact, many people view bankruptcy as a last resort after exhausting all other options. If you are considering bankruptcy, you need to be confident that you cannot fix your financial situation on your own. To figure this out, ask yourself these questions:

• Is there a way I can earn more money to pay off my bills?
• Is it possible to reduce my monthly expenses? What can I do to lower my bills?
• If I continue to make regular payments, will my debts be paid off within the next five years?
• Do I have disposable income to put towards paying off my debt?
• Would credit counseling help me learn how to manage my money?

Each case is unique. However, you may be a good candidate for bankruptcy if:

• You are at risk of losing some of your assets to creditors.
• Your income is too low to cover your monthly expenses and debt payments.
• It would take you more than five years to repay all of your debts.
• You are being harassed by debt collectors or threatened with legal action over your debts.
• You are ready to take control of your finances.

You must learn about the different types of bankruptcy to determine which one is right for you. The first type is Chapter 7, which is often referred to as the "liquidation bankruptcy." Here's what you need to know about Chapter 7 Bankruptcy:

• Certain assets are liquidated to repay your debts.
• Most debts that are not repaid are dismissed.
• Certain debts, such as student loans and tax debts, are not dismissed.
• You will not qualify for Chapter 7 unless your income or disposable income is low.

• Both individuals and organizations can file for Chapter 11 Bankruptcy.
• You will need to create a plan that outlines how you will restructure your finances to pay your creditors

• You will need to create a repayment plan that outlines how you will repay your debts.
• You must have a steady income in order to make these payments.
• Your repayment plan will last for three to five years.
• Remaining balances on certain debts are dismissed at the end of the repayment plan.
• You will not lose your personal property.

There are many different ways to seek financial relief in Oklahoma City, so you should never think of bankruptcy as your only option. Some of the alternatives to filing for bankruptcy include:

• Taking out a debt consolidation loan
• Hiring a debt settlement lawyer to lower your debts
• Enrolling in a credit counseling course to learn how to manage your finances
• Modifying the terms of your loans with your creditors

Filing for bankruptcy is not a decision that should be taken lightly. If you are considering taking this step, it's important to discuss your options with an experienced bankruptcy attorney first. The attorneys at Hammond Law Firm have helped thousands of clients in Oklahoma overcome debt.

Let us review your case and determine the most effective way for you to take control of your finances. To schedule a free consultation, call Hammond Law Firm at 405-216-0007 or submit your information via the form on this website.