When Should You Declare Bankruptcy?
In this tough economy being in debt is an accepted norm. Credit card companies entice American households with irresistible offers to extend credit or loans. While these offers may seem good, accepting more credit and going further into debt may lead you into debt overload. You may have difficulty determining when you’ve gone over the edge and need to declare bankruptcy. Sometimes people feel too ashamed to seek assistance and continue struggling to pay off their debt. Yet, the best approach to gain control of your financial affairs is to take the advice of a qualified Los Angeles bankruptcy attorney. If, after making an assessment of your current financial state with your attorney, you decide that filing for bankruptcy is suited for you, filing bankruptcy could put you on the solid financial footing you need for fresh start.
Are you in the danger zone?
Answer the questions below to help you assess whether you are in a financial danger zone:
- Are you having difficulty paying the minimum balance on your credit cards?
- Are debt collection agencies calling you?
- Do you feel uneasy when considering your financial state?
- Are you using credit to make most of your purchases, necessities included?
- Have you researched debt consolidation as a viable option for you?
- Are you reluctant to calculate how much debt you’ve accumulated?
Evaluating your situation
If you answered yes to at least two questions posed above, you should seriously consider your financial state as critical. Bankruptcy may be the right direction for you, if you cannot afford to pay off your debt. To make an initial assessment, start by evaluating your financial affairs. First take an inventory of all of your liquid assets. Include your real estate, vehicles, retirement funds, bonds, stocks, educational savings accounts and other non-bank account funds. To simplify calculations, round up each entry then add them together. Next, assemble all of your bills and credit statements and add up the totals. If the value of your assets amounts to less than total debt you owe, bankruptcy may beneficial for you.