What should be looked at when considering personal bankruptcy?
Posted by Ronald I. Chorches Wednesday, September 20th, 2017 | 164 views
Many people, including those in Hartford, Connecticut, seriously consider personal bankruptcy as an option. While viewed by some as a drastic measure, it can be right for some people in some cases.
To know if bankruptcy is right for you, you should ask yourself some questions.
Is there a different way that you can get the money you needed to pay your bills?
You can look into a plethora of possibilities, from selling possessions to asking relatives and friends for financial assistance. You can also look into getting a second job or even a third job. None of these things are fun, but one or more of them could improve your situation. Exploring the possibilities in each of those regards at least will let you make an informed decision about pursuing personal bankruptcy.
Are you on a budget?
The accumulation of debt, and the inability to repay it, typically have two components. One is insufficient income. The other, however, is excessive expenditures. By reducing the amount of money that you spend each month, you may find that you have enough cash to pay off some of your debts.
Should future prospects for additional income be considered?
Yes. For example, in the short term, if you recently became unemployed, you may be eligible for unemployment benefits. In the long term, you may be able to get another job. Consider the skills that you have, and the types of businesses you can apply them for.
Can you make a deal directly with those you owe money to?
You may be able to. A simple principle to apply is that it is better to get something instead of nothing. Those to whom you owe money may very well prefer to get some money from you soon, in exchange for reducing overall debt, instead of wondering if they are ever going to get anything.