Filing Bankruptcy - Can Filing Bankruptcy Help You?

Sometimes the only viable option an individual has left is filing bankruptcy due to the amount of debt they have incurred. The decision is one that most people don't come to easily, and it can leave them feeling sick to their stomach. The stress and turmoil of it all can lead to a panic attack for some people. Knowing that this is how most people react to filing bankruptcy might may it easier for you. Take a deep breath and learn all you can about the process. Only then can you decide if filing bankruptcy can help you or not. I am not offering you legal advise but information to help you determine if you should talk with a professional about it.

Start by writing down all of your debts and all of your assets. You need to have a list of your monthly living expenses and the amounts. Separate these expenses from everything else. List your biggest priorites on top such as your mortgage or monthly rent for shelter. Next should be your vehicle payments, utilities, food, and other necessities you have on a monthly basis.

You want all of your other loans, credit cards, and payments to be separated. You can then compare the lists and find out if after you pay all of your monthly living expenses do you have enough to pay the other list of items over a period of three years? Make sure you look at the total amount due on these accounts, not the minimum amounts due. You will find plenty of helpful tools on the internet that can do these calculations for you at no charge.

What can you do to generate more income to cover your expenses if you can't pay them off in a three year period? What can you do to reduce the amount of expenses you have? You will need to make some changes to your lifestyle including going out less, eating on a budget, and possibly working a second job to have more income. If you really can't find viable ways to reduce your expenses as well as increase your income, seek the assistance of a credit counseling service.

You want to select such a service very carefully though. There are plenty of them that can cause you to end up in a worse situation than you are already facing. Check with your local courthouse for a listing of approved counselors that are recommended by the court. The decision regarding filing bankruptcy is a hard one but it may be the only option you have if getting all your debt paid in three years just isn't a reaility for you.