The idea of starting another year with substantial debt may not be appealing to you. Unfortunately, you have faced struggles with your financial situation for some time, and you do not see it improving any time soon. Still, one of your goals for 2020 may be to obtain a fresh financial start.
While bankruptcy isn’t the only method for debt relief, if you haven’t found success with getting relief in any other way it’s time to consider a personal bankruptcy more seriously.
Should you file?
Deciding to file for bankruptcy is a personal choice. You can assess your specific circumstances, the relief methods you are willing to try and your financial goals for the future. It may be in your interests, however, to consider bankruptcy if you face any of the following scenarios:
- You have more debt than assets. If your outstanding debt exceeds your available assets, it is likely that you cannot repay your debts on your own.
- You have tried to negotiate with your creditors to no avail. In some cases, individuals can negotiate with their creditors for a lower monthly payment or to accept a lower total amount, but typically, creditors refuse to negotiate to any effective extent.
- You want to protect your IRA. Federal bankruptcy law protects IRAs from creditors, which means that you would not have to liquidate your account during bankruptcy proceedings.
If you do face any of these circumstances, gaining information on bankruptcy may help you determine whether it could prove more beneficial to you than simply trudging along with your debt.
Is bankruptcy the best option?
Bankruptcy certainly has its pros and cons, and whether it is the best option for you will depend on your specific financial details. If you hope to come to an informed decision on whether to file, you may want to consult with an experienced Tennessee bankruptcy attorney. This legal professional could help assess your affairs, explain how bankruptcy would affect your finances, and answer any questions about the process and its repercussions you may have.
It is understandable to be hesitant to take such a significant step, but if you hope to obtain financial freedom in 2020, it may be a step worth taking.