- November 9, 2012
- Posted by: Richard Feinberg
- Category: Bankruptcy
People dealing with crushing debt and financial hardships are often overwhelmed by the process of finding debt relief. While the bankruptcy process is meant to be a tool of relief, it can certainly be scary for anyone who doesn’t know much about it. The first step to a sound financial future, is education about your options.
Am I financially insolvent? In other words, is your financial hardship significant enough to prevent you from meeting your debt payment obligations to one or more of your creditors? If so, you may be considered financially insolvent. It is important to note that this can be a temporary or extended circumstance, which could impact your overall decision.
Are any of my assets at risk of repossession or foreclosure? Even if you aren’t financially insolvent, or only expect your financial hardship to last a short time, having assets at risk of seizure could be an indication you should move forward with bankruptcy. Why? Because filing for bankruptcy can pause liquidation proceedings while you work out a plan to get caught up on your missed payments. If you have yet to miss a payment you may not need bankruptcy and could, instead, attempt negotiating directly with your lender.
Have I discussed my options with a professional? It is extremely important that you consult a professional before choosing a debt relief path, especially bankruptcy. While you may be able to work out an agreement with creditors directly, it is helpful to know what all your available options are. Speak first with a St. Petersburg bankruptcy attorney about your financial situation to obtain a better idea of which path you could take for your debt relief plans.