My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
Outside of student loans, credit cards are one of the leading causes of individual debt. Credit card companies are really good at giving people offers and high credit limits, all in an effort to get people to carry high credit balances that will make the credit card company a significant amount of money. Once you are in deep credit card debt, it can be difficult to get out of credit card debt, which is why you should consider bankruptcy if you are in deep credit card debt.
You Can't Afford to Pay Your Credit Card Debt
You should consider filing for bankruptcy to deal with your credit card debt if you can't handle the debt that you have. That means that you don't make enough money to pay off your credit cards. You are only making enough money to pay for your bills and basic needs. If you really can't afford to pay your credit cards, and doing so is only putting you further in debt, then you should consider filing for bankruptcy.
You Don't Own a Lot of Property
Another reason you should consider filing for bankruptcy over your credit card debt is because you don't own a lot of property. If you file for Chapter 7 bankruptcy, the bank will use any nonexempt assets to pay back your creditors before wiping out your remaining debt. Exempt assets generally include things such as a vehicle and your home. Assets that are not exempt would be things like a second car, a vacation property, or a boat. Those are items that the court could require you to sell in order to settle your debt. So if you have assets that could be used to settle your debt, you may want to look into selling them yourself to settle your debt. However, if you have minimal assets, filing for bankruptcy can be a very smart way to deal with your credit card debt.
You Want a Chance to Start Over
It is really hard to build new positive financial habits when you are being bogged down by the choices that you made in the past. Credit card debt, if you really can't afford to pay it off, can follow you around for years.
If you are ready to start over, wipe the slate clean, settle with your debtors, and move on to a better and healthier financial life, filing for bankruptcy may be the right path forward for you. Discuss your financial situation with a bankruptcy law firm to determine if this is the right step for you.
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