Are you considering filing bankruptcy to resolve your debt problems? Do you have questions about the bankruptcy process? The Minnesota bankruptcy attorneys at Kain & Scott want to help you find an affordable solution to your financial problems. We offer a free bankruptcy consultation so that you can get the information you need to make an informed decision on the best way to get back on your feet financially. If you are having difficulty paying your debts, ask yourself these five questions.
1) Can I handle this on my own without help?
You may have been trying to find a way out of this problem for some time as you struggle month to month to pay your debts and living expenses, but no matter how hard you have tried, you just cannot seem catch up on your bills. If you are unable to cut expenses or increase your income, it may be very difficult to solve your debt problems on your own. If you have tried everything you can think of to handle this problem but nothing has worked, we can help.
2) Why am I in debt in the first place?
Are you in debt because you lost your job and you have had to use credit cards to pay your living expenses? Maybe you had a business that failed during the recession or you suddenly became ill and your medical bills are now more than you can handle. Sometimes there are things that happen in our lives that are beyond our control. Life events can create a financial crisis that is sometimes impossible to recover from without help. The bankruptcy court does not require that you be in debt for a specific reason — if you need bankruptcy relief, the reason why does not matter to the court.
3) What are my options to solve my debt problem?
Do you have any other options to resolve your debt problem? Perhaps if you have excess free time, you can get a part-time job to help pay off your debts. You may also be able to talk to your creditors to see how they can help. If you are in a situation where you can no longer manage your debt, it is never recommended to borrow money from a friend, relative, or a bank. Other common solutions people turn to is to take money out of their retirement accounts or to borrow against an asset they own. Not only is this adding to your debt problem, but it’s also putting your future financial situation in jeopardy. If you’re considering turning to one of the later options, we hope you consider talking to an experienced bankruptcy attorney first.
4) What do I think is the best option for me?
It is difficult to make a decision about what option is best for you without knowing all of the facts. For example, if you take a loan against your home to pay off your other debts, you could lose your home if you are unable to make those payments. If you exhaust your savings or retirement accounts, you may not be able to replace those funds before you are ready to retire.
You can find a great deal of information on the internet about bankruptcy; however, you must be careful because some of this information is misleading or completely incorrect. Before making a decision about the best way to handle your debt problem, you need to consult with an experienced bankruptcy attorney who can advise you of your bankruptcy options and the pros and cons of filing bankruptcy.
5) How can I prevent myself from falling back into debt?
If you are in debt due to a life event beyond your control, you may not have been able to prevent your financial problems; however, having an emergency savings account can help you avoid falling into debt if you experience a financial crisis in the future.
If after answering all of the questions above you decide that you need help, seek the experience of a knowledgeable bankruptcy attorney. They have the knowledge you need to help you get your life back.
