If you are at the end of your wits in Nashua with your credit card and medical debts, you may be contemplating bankruptcy. On the surface it appears to the answer to your financial problems. But you might find yourself procrastinating on filing because you are not entirely sure if it is the right solution.
Bankruptcy has helped many people who faced insurmountable odds with certain debts overcome them. You should know that filing for bankruptcy is one of the most important decisions you may ever make. It is important for you to consider how it can affect your situation before you file. Here are some things that can help you to determine what the best solution is for your finances.
Know the difference
Think about your goals and which type of bankruptcy is better for your circumstances. Chapter 7 may be ideal if you do not make enough money to pay off your debts. Many people prefer Chapter 7 because it discharges their debts so they no longer have to worry about paying them. Keep in mind there is a stringent means test you must pass to qualify. If you earn a decent income and do not qualify for Chapter 7, you may qualify to restructure your debts through a Chapter 13 bankruptcy so you can afford the payments.
You have no other options
Before considering bankruptcy, you should try to improve your situation in other ways. Contact your creditors, let them know you can barely afford the payments and ask if they are willing to work with you to lower them. Consider borrowing money from a trusted friend or using a debt management program. You should carefully consider all alternatives before you file for bankruptcy.
You may feel relieved when you think about how bankruptcy can put an end to your debt nightmare. Do not forget to think about the things that have caused you to end up in this situation. Many people who are considering bankruptcy find it beneficial to speak to their attorneys so they can better their options.