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If you're dealing with pressures of mounting debt and see no feasible way to get back on solid financial footing, you may be thinking about filing for bankruptcy. Are there some telltale signs that bankruptcy is the right choice to make? What are some indicators that bankruptcy would provide more benefits than drawbacks? Most people know when they have to file. Below, bankruptcy lawyer Thomas A. Corletta, Attorney at Law in Rochester, New York, discusses three ways to tell if bankruptcy is the right choice for you.

3 Ways to Tell If Bankruptcy Is Right for You

1. There Is No Way to Realistically Pay Back What You Owe, Based Upon Your Income and Assets

Bankruptcy is not an easy decision. You first should consider the size of your debt against your monthly income. Is your income substantial enough to pay down what you owe on a consistent basis? Or is your income far outweighed by your debt and any feasible repayment plan? Also, what kind of debt do you have? Is it primarily high interest credit card debt, which can ordinarily be discharged in bankruptcy, or secured or priority debt, like mortgages, car loans, taxes, or child support, which ordinarily cannot be modified in bankruptcy. Once you have the answer to these and other questions, you will have enough information to make an informed decision about bankruptcy. You should consult with a qualified bankruptcy attorney to help you with your decision.

2. Creditors Are Hounding You

bankruptcyIf your life is a game of hide-and-seek from debt collectors and creditors, bankruptcy is probably necessary. Creditors have seemingly endless ways to track you, and they can and will sue you for money you owe. When you file for bankruptcy, debt collectors are required to stop contacting you and cannot seize your property or garnish your wages unless given permission by the Bankruptcy Court.  Your lawyer will communicate on your behalf with your creditors.

3. Your Home Is Going Into Foreclosure

The prospect of losing your home is understandably scary. If the threat of foreclosure looms, and you are behind in your payments, bankruptcy offers some relief. First, a temporary stay is issued by the courts, so the foreclosure is required to stop temporarily. During that time, you can decide with your lawyer whether you should keep the home and whether you can afford it. Some choose to try to stay in their homes, while others may see it as not feasible and make plans to leave, discharge the debt, and start over. Each case is different, Your lawyer will help you find the best solution.

Let Thomas A. Corletta, Attorney at Law look out for you at every step of the bankruptcy process. With more than 37 years of legal experience, he has helped countless clients find debt relief and financial freedom. Call (585) 546-5072, visit his website, or reach out to him via Facebook or Twitter.

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