A common question during tough economic times is, when should you file bankruptcy? The question is especially valid in Georgia, with plummeting home values, foreclosures, job losses, and credit card debt. These are in fact some of the biggest reasons you might file personal bankruptcy in Georgia, if not any state in the country. This guide begins the process for you to help make the choice. It’s an important one, so read on.
Bills You Can Pay
If you are paying only the minimum on most if not all your bills, personal bankruptcy is a good option. Many can only afford to pay the interest on credit cards or other bills, falling deeper and deeper into financial troubles. If you simply know it won’t get better, consulting with a Georgia bankruptcy lawyer can help make the decision for you.
Budgets Won’t Work
If it won’t get any better, if it’s impossible to create a budget to get out of debt in a matter of years, Georgia bankruptcy can give you a fresh start. It’s not giving up financially; it’s a move you are allowed to make as citizen and what you’ve been paying taxes for. If no foreseeable budget can get you out of this problem, bankruptcy is much better than losing all your assets and properties.
Home Foreclosure, Apartment Rent
If foreclosure papers have been filed, are about to be filed, or if you cannot pay the rent on your place, bankruptcy may be your best option (note it’s not your last option). Sometimes you can actually save your home by working with a Georgia bankruptcy lawyer, especially if you file before the home goes into foreclosure. If, when looking ahead, you feel the apartment or home you’re renting will be too much with your debt, you may file just to protect yourself from being quite literally homeless.
Lost Job
Losing a job is not the end of the line. In fact, just in 2010 more jobs have been created than in some time. However, in the short term you may have a serious financial struggle. You may be fine on bills, then your laid off and getting unemployment benefits, which can be quite low in comparison to your paycheck. If you lose a job, Chapter 7 personal bankruptcy can discharge your debts and give you a fresh start. You can also file Chapter 13 personal bankruptcy in order to protect your assets.
Other Financial Problems
Losing a job is not the only financial problem Georgia residents face. The biggest reason for filing bankruptcy is not job loss, foreclosure, or credit card debt; it’s medical bills. Sometimes you may suffer through an illness and have no coverage or minimal coverage; paying tens of thousands to the hospital may be out of the question. This is another example where personal bankruptcy, specifically Chapter 7, can discharge this debt for you.
If you’re still unsure if bankruptcy is your best option, consulting with a legal expert can help.
