When Should I Consider Bankruptcy an Option?

It goes without saying that it’s easier to get into debt than out of it, but, in many cases, it’s not your spending that creates the problem. While charging purchases or taking out personal loans often begin the downward spiral of debt, it’s the recurring interest charges that cripple most people. While contacting a bankruptcy law firm in Brighton Beach can help you learn more about your options, filing for bankruptcy should be a last resort.

What to Do Before You File
When you contact bankruptcy specialists, such as those at Ursulova Law Offices, they will evaluate your financial situation and discuss your options with you. In many cases, they may be able to provide you with helpful resources in place of filing for bankruptcy. It will be easier for you to rebuild your credit rating if you don’t file bankruptcy, so most Brooklyn bankruptcy attorneys will try to help you in other ways.

One option that you might not have considered is to work with a credit counseling agency. A credit counseling agency will negotiate with your creditors to see if they can lower your monthly payments, so they will be more manageable. As you work with the agency, have your monthly budget handy and refer to it through the process. You should be able to make the lower monthly payments on time without having to skip other monthly obligations listed in your budget.

When is it Time to File for Bankruptcy?
If the lower payments won’t make it easier for you to meet your monthly obligations, contacting a bankruptcy law firm in Brighton Beach may be your best alternative. Similarly, if you work out a repayment plan and it won’t help you get debt free within 36 months, this is a sign that a bankruptcy may be your only option. In either situation, the continuous interest charges will grow your debt even as you try to pay it down.

If you are facing mounting debt and it seems as though you have tried everything to pay it down, Brooklyn bankruptcy attorneys may be able to offer more options. A consultation with Ursulova Law Offices will help you learn more about the debt relief resources available to you. If filing bankruptcy is necessary, your lawyers will walk you through the process and ensure you understand what filing bankruptcy will mean for you.