Helpful Bankruptcy Tips

Bankruptcy

If you are thinking about filing for bankruptcy in the state of Georgia, there are a lot of things that you need to know beforehand. That’s why it is always a good idea to seek advice from a seasoned group of lawyers, such as the professionals at the McCormick Firm PC in Atlanta. Your attorney will be able to formulate a debt relief plan customized to your current situation. But if you haven’t spoken to an attorney yet, keep on reading to find out some helpful advice concerning bankruptcy.

Avoid using the equity in your home or your retirement savings to pay credit card bills

A lot of folks in Georgia and around the United States do not know that their savings accounts and retirement accounts are safe from creditors. This is also true for the equity in your home. If you decide to spend these assets on repaying your debt, it can be extremely hard to rebuild those assets in the future.

Write down what you owe and compare that number to how much income you make

Sometimes people are scared to learn the whole truth about their financial situation, and as such only have a very limited idea of how much money they actually owe to their creditors. A good task to complete is to add up all of the balances that you owe on your bills, and formulate a budget to follow based upon how much money you make at your job. If you find that it is virtually impossible to repay your debts on this budget, than bankruptcy may be your best option.

Danger ahead

Try your best to look out for danger signs. If you realize that you can only pay off the minimum amount owed on your credit cards, and you’re using those same credit cards to buy food and other necessities but have nothing left over in case of an emergency, you should find someone who can give you some advice on the options that you have. When you pay off your minimum balances, and then charge your card to its limit just to survive, you may be wandering down a bad path.

To file or not to file?

For some, bankruptcy is the only option left to consider. If you’re drowning in credit card debt, filing for bankruptcy may be your best choice as your debt can be discharged under certain bankruptcy chapters. The sooner that you take a proactive stance about your debt, the sooner that you will be able to pay it off and live a normal life.