When Should You File for Bankruptcy?

Bankruptcy; when you hear it, does it strike fear within you? Don’t let it. It’s not nearly as scary as you may think it is. When you hear about bankruptcy, you may refer to the articles in the media that document major companies folding, closing businesses worldwide. You might also think of celebrities who have fallen into some hard times. Bankruptcy may not be the most glamorous thing, however, it is not a bad option to take control of your debt and finances again. A bankruptcy attorney in St Louis like Marie Guerrier Allen can help you figure out if bankruptcy is the best option for you. Here are a few ways to tell that it is time to contact a bankruptcy attorney in St Louis and file for bankruptcy.

How dangerous is your financial situation? – Are you currently only making minimum payments on credit cards? Do you have bill collectors constantly contacting you? Does thinking about sorting out your finances make you feel terrified? Are you using credit cards to acquire your life’s necessities? Are you considering consolidating debt? Do you not know how much exactly you owe? If you find that at least two or more of these situations apply to you, you will want to at least give your financial situation some more attention. In the simplest definition, bankruptcy is when you owe more than you can afford to pay.  If you are worried about your financial situation, you should consider contacting a bankruptcy attorney in St Louis like Marie Guerrier Allen. Simply contacting someone for help does not mean that you will absolutely need to file for bankruptcy; it is just a great first step in taking control of your finances.

What are common reasons for filing for bankruptcy? – There are plenty of reasons why a person would file for bankruptcy. Prolonged unemployment, large medical expenses, marital problems, and serious credit card debt are just a few of the reasons why someone would file for bankruptcy. Again, these are only a few of the reasons to file for bankruptcy. Ultimately, you will want to speak to a bankruptcy attorney in St Louis to determine if bankruptcy is right for you.

Types of Bankruptcy – There are two types of bankruptcy; Chapter 7 Bankruptcy & Chapter 13 Bankruptcy. In Chapter 7 Bankruptcy, your assets will be liquidated to pay off your acquired debt. The cash obtained from liquidating assets will be spread amongst all of the owed companies, banks and credit card companies. Chapter 13 Bankruptcy is often a better choice for most, especially if you have a consistent annual income. It will reorganize debt to have it paid off within 3 to 5 years. In Chapter 13 Bankruptcy, you will be able to keep property and possessions while working and paying off your debts.

If you are unsure about your financial situation, it doesn’t hurt to contact a bankruptcy attorney in St Louis today. Marie Guerrier Allen can help you with financial planning and she will determine the best solution for your financial woes.