There are plenty of questions you might have about your finances before you file an official petition for bankruptcy. Talking it through with a lawyer can help.
Most people are curious about whether or not they need to meet a certain debt threshold before initiating bankruptcy proceedings. Knowing your own personal situation is the most important thing that can assist you when coming to the table with bankruptcy concerns. You do not necessarily have to owe a certain amount of debt or be completely insolvent before filing for bankruptcy.
Given that each person’s financial situation is different, the amount of debt that can cause distress for one person may not be an issue for someone else. There are a few factors to consider if you have minimal debt, but are still contemplating filing for bankruptcy. These include:
- The total amount of debts that you owe.
- How long it might take you to repay this debt
- Whether or not bankruptcy would even allow you to wipe out the kind of debts you owe.
- The amount of money you might spend on filing or attorney’s fees.
- Whether you are facing a wage garnishment, lawsuit or any other collection activity
There are long-term consequences associated with filing for bankruptcy, but for people in substantial debt, they can also be the only way to put these financial challenges behind you and move forward into a more effective future. One of the best things you can do for yourself and your case is to consult with a knowledgeable bankruptcy lawyer to determine whether or not filing is right for you. Misunderstanding the types of exemptions or debt that can be discharged in the bankruptcy process could cost you significantly if you file without the advice of an attorney. Meanwhile, discussing directly with an attorney gives you a better perspective of what’s involved and what you need to do if you intend to initiate a bankruptcy petition.