Deciding to file bankruptcy is not a decision you should make lightly. It will have a severe impact on your credit score and may take many years to recover from. For this reason, filing bankruptcy should usually be your last option. However, if you’ve accumulated massive amounts of debt and do not have the income to begin making payments, filing for a Chapter 7 bankruptcy could be your best move.
Questions to ask yourself before filing bankruptcy
Consulting with an experienced Chapter 7 bankruptcy lawyer in the Bronx is one of the best ways to determine if you’re ready to file bankruptcy. But it’s also important to know what questions to ask yourself before you file bankruptcy. Listed below are some questions to consider before you file:
- What are your other options? Bankruptcy should be considered only after you have exhausted your other options. Credit counselors and debt management specialists may be able to help you reduce interest rates and consolidate your payments without having to file.
- Will you qualify for Chapter 7 bankruptcy? If your income is greater than the median income in your state, then you may not be eligible to file a Chapter 7 bankruptcy.
- How expensive will bankruptcy be? Most people who file bankruptcy hire a lawyer, which can be expensive. Consult with multiple bankruptcy attorneys in the Bronx to determine how much it will cost and whether you can afford it.
- Will bankruptcy solve the problem? Not all debts are discharged in a bankruptcy. For example, if your main debt comes from student loans, bankruptcy will not help.
- Can you change your spending habits? Once you file bankruptcy, your credit score will take a nose dive. That means it’s going to be difficult, if not impossible, to obtain loans or credit cards for quite a while. You must seriously consider if you can change your spending habits and live a more sustainable, cash-based life afterwards.
- How will it affect your future? Although bankruptcy remains on your credit report for up to 10 years, it is possible to recover from it if you handle your finances correctly moving forward.
If you’re considering bankruptcy, you should begin to develop a plan not just for the immediate future, but for the long-run as well. If you don’t think you can do it alone, a bankruptcy attorney can be a major source of comfort and guidance during the process.
Contact a Chapter 7 bankruptcy attorney in the Bronx
If you need more information about filing a Chapter 7 bankruptcy in the Bronx, contact the law offices of Thomas M. Denaro, Esq. He has decades of experience helping clients get through the bankruptcy process and begin planning for a better financial future. Call today at (718) 863-6000 for a free consultation or contact us online.