Being overwhelmed by debt seems to be the “American way”. However, there comes a time when being overwhelmed turns into literally drowning in debt, being harassed by creditors, and facing repossession or foreclosure. So when, exactly, should you seriously consider filing for bankruptcy?

I usually tell my clients that when you are unable to make anything except minimum payments, when you are losing sleep over your financial situation, or when you are being harassed by creditors to the point that you actually screen your telephone calls or are receiving calls at work, that is when you need to seek out a solution. You are no longer just struggling with debt, you are now allowing debt to affect your life. The actual amount of debt you owe is not a gauge to use in considering filing bankruptcy. Instead, your ability to manage the debt and repay the debt should be considered.

First things first. Learn about bankruptcy. Get educated. And the best way to do so is to consult with an experienced bankruptcy attorney in your state. Although bankruptcy is a federal program, the nuances can vary dramatically by state, meaning that your options as to which chapter of bankruptcy you may qualify to file may be different depending on your state.

An experienced bankruptcy attorney will be able to answer the following questions for you:

• What are the different types of bankruptcy?
• Are there alternatives to bankruptcy that you may want to explore?
• Are you eligible for bankruptcy?
• Which debts will be discharged and which debts will you still have to pay?
• Will you be able to keep your home?
• Will you lose your car or other property?
• Will your credit cards and/or payday loans be paid off?
• Can title loans be included and what happens to the car?
• Is your pension, retirement, 401(k) safe if you file?
• Will cosigners be stuck with your debt?

Remember that filing for bankruptcy is a serious decision that only you can choose to do. No one can decide for you. Further, in order for an attorney to accurately answer the above questions, you must sit down with an attorney, disclose all of your property and all of your debts, which is often intimidating for clients. These questions cannot be answered during a 15 minute phone call. Therefore, when you contact an attorney regarding bankruptcy, your basic questions can be answered, but understand that a consultation, in person, is normally required to give you all of the information you need to make an informed decision.

The Valenzuela Law Firm, LLC never charges a consultation fee! Call us today and let us review your situation and let us answer these and other questions that you may have regarding bankruptcy!