If you’re wondering whether your debt is enough to justify filing for bankruptcy, you’re not the only one. Here at the Law Office of Davis & Jones, P.C., we get this question quite frequently – and we answer it by saying that bankruptcy laws don’t stipulate a minimum debt requirement.
We also tell debtors that while the amount they owe certainly matters, other factors must be taken into account. To determine if it makes sense to file for bankruptcy, consider the following questions.
Bankruptcy doesn’t wipe out every type of debt. Filing a claim can erase your medical bills, credit card balances, personal loans and other non-priority unsecured debts. But some financial obligations – including alimony, child support, back taxes, criminal fines and for most filers, student loans — are nondischargeable in bankruptcy. If most of what you owe falls in that category, filing may not be in your best interest.
Creditors are often willing to work with debtors, and negotiations could enable you to avoid filing for bankruptcy. Give your creditors a call and ask about any options they offer – you might find that you can enter into a payment plan or settle for a lesser amount, for example. These types of arrangements may just be enough to bring your financial difficulties to an end.
Before you make the decision to file for bankruptcy, you should consider your income. If the amount you earn allows for the possibility of paying off your creditors, you might be a candidate for a debt consolidation program. An experienced debt relief lawyer – like the legal team here at our law office – can assist you in reorganizing your financial obligations into one budget-friendly payment. Go this route, and you may be able to solve your money problems without resorting to bankruptcy.
Chances are, if you’re questioning whether you have enough debt to warrant a bankruptcy claim, the answer is yes – just thinking about it means you’re probably under financial strain. But to make the smartest decision given your particular situation, you’d be wise to consult with a debt relief lawyer.
An attorney who specializes in debt relief can provide you with expert advice on the best approach to take. And whether that’s filing for bankruptcy or debt consolidation, you can expect assistance with every step of the process.
At the Law Office of Davis & Jones, P.C., we offer free bankruptcy consultations to Utah residents who are overburdened with debt. Our attorneys have a combined 40 years of legal expertise, and we can help you make the right decision regarding your financial future. Contact our Salt Lake City office and schedule an appointment to discuss bankruptcy with an experienced debt relief lawyer today.