Eliminate Your Debt And Get A Fresh Start

Is bankruptcy your most viable option?

On Behalf of | Jun 21, 2023 | Bankruptcy

You’d be hard-pressed to find a household in Georgia right now that hasn’t experienced some type of economic stress in recent years. Throughout the state and across the country, many businesses have shut down, and families have been having a difficult time making ends meet. If you’re struggling to put food on the table and provide for your children’s basic needs, you are not alone. You might also not be the only person considering filing for bankruptcy.

So, how do you know if bankruptcy is the best financial decision to make at this time? There are several key issues to consider to help you determine if this valuable financial tool fits your current needs and ultimate financial goals. Before making a final decision, it’s always helpful to discuss your finances with an experienced source who can provide guidance and support.

Is your debt equivalent to more than half of your income?

One of the issues that can help you determine if bankruptcy is the best debt relief option in your case is to assess the “debt/ratio comparison.” If your current debt amounts to more than half your income, then you may be a good candidate for bankruptcy. In addition to this issue, you’ll want to ask yourself whether you have a legitimate means to pay off your debt within the next five years.

If the answer is “No,” then this, too, suggests that bankruptcy is a debt relief option you might want to consider. If, on the other hand, you’re struggling right now because you lost your job or are incurring unexpected medical bills, etc., but you have a plan to generate more income and believe that you can pay back creditors over the next few years, then you might not need to file for bankruptcy; at least, not yet.

Beware of the debt relief scammers out there

You might be hesitant to file for bankruptcy in a Georgia court. Maybe you’re thinking about consolidation options, instead. If so, you must be aware that there are many fraudsters out there who are trying to scam people out of thousands and thousands of dollars by offering phony debt relief programs.

Don’t let someone fool you. Conduct thorough research ahead of time to determine which type of debt relief, including bankruptcy, best fits your needs. Whichever route you choose, it’s imperative to adhere to state or federal laws that may be relevant to your case. Many people seek legal guidance before making their final decisions.