What To Expect From A Bankruptcy Evaluation
Posted on: 14 June 2017
If you have found yourself in financial dire straits and are contemplating whether or not filing for bankruptcy is your best available option, you're in luck -- there are strategies designed to help you make a final decision on this matter. Bankruptcy evaluations can answer important questions about the process and provide you with a good indication of whether bankruptcy is a feasible option for your specific situation. A good bankruptcy evaluation takes several things into consideration. The major points are as follows.
The Nature of Your Debts
Some debts, such as student loans and back child support payments, usually cannot be discharged via successful filing of bankruptcy. However, in certain cases, you may be able to get free from student loan burdens provided you are able to prove to the court that you have no chance of ever being able to work again -- keep in mind that successful claims are extremely rare.
Other types of debt that need to be carefully considered are your secured debts. For example, if you can't make your car payments, filing for bankruptcy means that you will have to forfeit the vehicle. The same thing applies to items such as jewelry, household appliances, and anything else involving a secured loan. Bankruptcy won't be able to help you with government loans such as HUD housing loan and most tax debts. However, bankruptcy can get you free of personal debts such as payday loans.
How Much You Owe
Some people panic when they find themselves in debt and turn to thoughts of bankruptcy as a means of seeking a viable solution for their dilemma. However, many people are able to dig themselves out of debt successfully using other means, such as going on a strict financial diet that eliminates all unnecessary spending for a period of time in order to pay down debt. Others find relief by taking out a consolidation loan at a lower interest rate than that of the average of their combined debt. A bankruptcy evaluation will take into consideration whether your personal circumstances indicate that choosing another route out of debt may be in your best interests.
Other things taken into consideration by a bankruptcy evaluation are whether you own substantial assets, such as real estate and whether your existing debts can reasonably be covered under your current employment situation.
For more information, you will want to contact a company such as U.S. Records.
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