The bankruptcy process is a valuable tool that is designed to help people get out from under their debts and back in control. While it is a process that carries many benefits over other debt relief strategies, it isn’t for everyone. Anyone seeking debt relief solutions should remember that filing for bankruptcy is a decision that should be made with care and consultation.
When It Is Right
Any experienced Dayton bankruptcy lawyer will tell you that the most important aspect of filing for bankruptcy is a thorough review of your financial situation. Part of the reason for initial consultations with your lawyer is to evaluate your financial situation against all available debt relief strategies. It is important to be sure that your financial hardship is best managed by a bankruptcy filing, and not well served by any other solution. Here are a few signs bankruptcy could be your best option:
- You are insolvent — when your debt liabilities outweigh your disposable income and/or the market value of your assets.
- You are at risk of foreclosure — when your home and property become at risk for seizure and liquidation.
- You have wages being garnished — when your creditors are taking a portion of your paycheck to satisfy your debt obligation.
- You have tried counseling or other strategies unsuccessfully — when alternative debt relief solutions, such as debt management plans or negotiations, have failed.