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Determining if bankruptcy is the right move

Many people face financial issues on a daily basis. Some of those people know exactly what they are going to do to get out of trouble. Others have no idea where to turn. Not everyone has the ability to work with a financial advisor or other professional when it comes to making such major life decisions. Today, we will discuss how to determine if bankruptcy is the right move for you in Long Island.

There are three major financial situations that cause people to file for bankruptcy these days. Those three situations include divorce, unemployment and the inability to pay for medical debt that is uninsured. When you combine all three of these situations, you come up to a statistic that is mindblowing; they account for 90 percent of all United States bankruptcy filings.

It might not be too long before two more situations enter the picture. Those two new situations could very well be the increasing default rate for student loans and the market for subprime auto loans.

When you start thinking about bankruptcy and whether or not it is time to file, you need to determine three things. Those three things are how much you have in debt, how much money you earn and the value of your assets. Once you put together these numbers you can determine if filing is right for you. If it is, you will also be able to determine if you should file Chapter 7 or Chapter 13 based on your situation.

Are you on the verge of filing Chapter 7 bankruptcy in New York? It’s best to work with an experienced bankruptcy law attorney when you get ready to file. An attorney will be able to guide you through the process and ensure that it is done in your best interest.

Source: Chicago Tribune, “Help Squad: Is bankruptcy right for you? And what kind?,” Jan. 03, 2018

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