It’s easy to get carried away with finances. All of a sudden, you’re in a situation where you can’t pay all of your bills. Before you end up defaulting on too many financial obligations, it may be time to consider bankruptcy. By talking with a bankruptcy law firm in Pittsburgh, PA, you can learn about your options.
Identify Your Debt-to-Income Ratio
One of the first things you will want to do is calculate your debt-to-income ratio. Your bills may be too high based on the amount of income that you bring in. If you bring all of your financial obligations into a bankruptcy lawyer, they can help to establish your ratio. This ratio is used by lenders, too, to determine whether they can issue you credit cards, a mortgage, and other things.
Establish What You Can Pay
You may not be able to pay everything. The minimum payments on credit card bills, combined with medical bills, may be tapping you out. This can, also, lead to a significant amount of stress. If you can’t pay everything each month, you have to decide what you can pay. This will allow lawyers to determine what kind of settlement plan can be established with all of your creditors.
Explore the Chapters of Bankruptcy
There are quite a few chapters of bankruptcy. One will be right for you if it’s the route that you decide to take. You will have to make important decisions, such as whether you want to keep your home or let it go in bankruptcy. Other items, such as boats and RVs, will often have to be forfeited to help pay for the debt.
Filing bankruptcy is an option to explore, especially if you are overwhelmed by debt. Take the time to discuss your options with a bankruptcy lawyer. It will make it easier to decide if it’s the best financial move for you.