Should I File Bankruptcy?
The decision to file for bankruptcy protection requires a realistic assessment of your debt and asset situation. Many clients wait too long to make the decision because they genuinely want to keep paying their debts.
For some people, the best solution is to make all their credit card debt, medical bills and personal loans go away for good. Other people may need to stop a foreclosure and gain some time to repay missed house payments.
If you are a homeowner in foreclosure and you want to keep your home, the answer is pretty easy. You need to stop the foreclosure immediately and get back on track with your bank.
If you are a homeowner and your home has declined in value significantly, installment payment bankruptcy can allow you to pay pennies on the dollar towards a second mortgage and pay ZERO percent interest. How does that sound for a guaranteed ‘loan modification’?
To get the big picture of what your debt load really is, add up all the balances on your credit accounts. Next, figure how much you can really afford to pay toward that debt each month, after you have paid the rent or mortgage, car payments, utility bills, insurance, food, gas and all the other bills. For example:
• If you owe $15,000 on credit cards and other debt accounts, and you want to get out of debt in two years, you will have to pay $750 per month when you add in interest. This assumes that you do not make any other credit card charges for the entire 24 months – not realistic.
• If you owe $25,000 on credit cards and other debt accounts, and you want to get out of debt in two years, given the credit card interest rates, you will have to pay $1250 per month, and not make any other charges during the 24 months.
• If you owe $50,000 (not unusual), to get out of debt in 4 years would take payments of $1,500 per month when you account for the credit card interest. Do you have a spare $1500 per month? And can you live without putting anything on a credit card for four years?
Do You Qualify for a Bankruptcy
Your financial situation is unique, therefore no website can tell you if you will qualify or not. I offer a free consultation so that together we can determine if bankruptcy is right for you.
I am Ryan Davies and I provide bankruptcy services for the southern California communities of Lake Forest, Rancho Santa Margarita, Laguna Niguel, Laguna Beach, Laguna Woods, Aliso Viejo, Mission Viejo, San Clemente, Irvine, Costa Mesa, Newport Beach, Tustin and Santa Ana.
